Aerojet Rocketdyne to Redeem 2.25% Convertible Senior Notes Due 2023

Rhea-AI Summary

Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) announced the redemption of its outstanding 2.25% Convertible Senior Notes due 2023, totaling approximately $145.9 million as of July 15, 2022. The redemption date is set for September 19, 2022, with a redemption price equal to 100% of the principal amount plus accrued interest. Note holders can convert their notes to shares at a rate of 38.4615 shares per $1,000 principal, equivalent to a $26 conversion price. Cash Settlement will be used for conversions. Further details can be obtained from The Bank of New York Mellon Trust Company.

Positive

• Redemption of $145.9 million in Convertible Senior Notes may improve financial structure.
• Conversion option allows shareholders to obtain common stock, potentially enhancing liquidity.

Negative

• Redemption may result in reduced cash reserves or increased debt levels if not managed properly.
• Dependence on cash settlement for conversions could limit options for investors.

EL SEGUNDO, Calif., July 15, 2022 (GLOBE NEWSWIRE) -- Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) announced today that it has issued a notice of redemption to redeem all of its outstanding 2.25% Convertible Senior Notes due 2023 (CUSIP Number 007800 AB1) (the “Notes”) on the redemption date of September 19, 2022. As of July 15, 2022, approximately $145.9 million principal amount of the Notes was outstanding. On July 14, 2022, the closing price of the common stock, as reported on the New York Stock Exchange, was $39.11.

The Notes will be redeemed at a stated redemption price equal to 100% of the aggregate principal amount of such Notes, plus accrued and unpaid interest to (but excluding) the redemption date.

The conversion rate of the Notes as of July 15, 2022 is 38.4615 shares of the common stock per $1,000 principal amount of the Notes, which is equivalent to a conversion price of $26 per share of common stock of the Company. Holders may surrender their Notes for conversion at any time prior to the close of business (which is 5 p.m., New York City time), on September 16, 2022, the scheduled trading day immediately preceding the redemption date. Holders of Notes that wish to convert their Notes must satisfy the requirements set forth in the Notes and the indenture for the Notes.

The Company is electing to settle conversions of Notes using Cash Settlement as defined in the indenture for the Notes.

Upon conversion, a Holder will not receive any separate cash payment for accrued and unpaid interest and the Company’s settlement of the conversion obligation shall be deemed to satisfy its obligation to pay the principal amount of the Note and accrued and unpaid interest to, but not including, the relevant conversion date. On the redemption date, the redemption price will become due and payable upon each Note to be redeemed and interest thereon, if any, shall cease to accrue on and after the redemption date.

A copy of the notice of redemption may be obtained from The Bank of New York Mellon Trust Company, N.A., as trustee, paying agent and conversion agent, by calling (315) 414-3349.

About Aerojet Rocketdyne Holdings, Inc.
Aerojet Rocketdyne Holdings, Inc., headquartered in El Segundo, California, is an innovative technology-based manufacturer of aerospace and defense products and systems, with a real estate segment that includes activities related to the entitlement, sale, and leasing of the Company’s excess real estate assets. More information can be obtained by visiting the Company’s websites at www.rocket.com or www.aerojetrocketdyne.com.

Contact information:
Investors: Kelly Anderson, investor relations 310-252-8155
Media: Steve Warren, vice president, communications 703-650-0278

FAQ

What is Aerojet Rocketdyne's recent announcement about AJRD?

Aerojet Rocketdyne announced the redemption of its 2.25% Convertible Senior Notes due 2023, totaling approximately $145.9 million.

When is the redemption date for AJRD's Convertible Senior Notes?

The redemption date for the Convertible Senior Notes is September 19, 2022.

What is the conversion rate for AJRD's Convertible Senior Notes?

The conversion rate is 38.4615 shares per $1,000 principal amount, equating to a conversion price of $26 per share.

How will Aerojet Rocketdyne settle conversions of the Notes?

Aerojet Rocketdyne will use Cash Settlement to fulfill the conversion obligations of the Notes.

What happens to the interest on the Notes upon redemption?

Interest on the Notes will cease to accrue after the redemption date, which is September 19, 2022.