Astronics Corporation Announces $150 Million Convertible Senior Notes Offering
Astronics (NASDAQ: ATRO) has announced plans to offer $150 million in convertible senior notes due 2030 through a private offering to qualified institutional buyers. The company will grant initial purchasers an option for an additional $15 million in notes. The notes will be convertible to cash, common stock, or a combination thereof at Astronics' discretion. The company plans to use the proceeds to repay outstanding borrowings under its term loan facility and partially repay its revolving credit facility, as well as cover offering-related expenses.
Astronics (NASDAQ: ATRO) ha annunciato piani per offrire 150 milioni di dollari in note convertibili senior con scadenza nel 2030 attraverso un'offerta privata per acquirenti istituzionali qualificati. L'azienda concederà ai compratori iniziali un'opzione per ulteriori 15 milioni di dollari in note. Le note saranno convertibili in contante, azioni ordinarie, o una combinazione di questi a discrezione di Astronics. L'azienda prevede di utilizzare i proventi per rimborsare prestiti in essere sotto il suo prestito a termine e per rimborsare parzialmente la sua linea di credito revolving, oltre a coprire le spese relative all'offerta.
Astronics (NASDAQ: ATRO) ha anunciado planes para ofrecer 150 millones de dólares en notas convertibles senior con vencimiento en 2030 a través de una oferta privada para compradores institucionales calificados. La compañía otorgará a los compradores iniciales la opción de adquirir 15 millones de dólares adicionales en notas. Las notas serán convertibles en efectivo, acciones comunes o una combinación de ambos a discreción de Astronics. La empresa planea utilizar los ingresos para pagar préstamos pendientes bajo su línea de crédito a plazo y para reembolsar parcialmente su línea de crédito revolving, así como para cubrir los gastos relacionados con la oferta.
Astronics (NASDAQ: ATRO)는 2030년 만기Convertible senior notes를 통해 1억 5천만 달러를 개인 자격이 있는 기관 구매자들에게 제공할 계획을 발표했습니다. 회사는 초기 구매자에게 1천5백만 달러의 추가 노트 옵션을 부여합니다. 노트는 Astronics의 재량에 따라 현금, 보통주 또는 그 조합으로 변환될 수 있습니다. 회사는 수익금을 기존의 만기 대출을 상환하고 순환 신용 시설을 부분적으로 상환하며, 제안 관련 비용을 충당하는 데 사용할 계획입니다.
Astronics (NASDAQ: ATRO) a annoncé son intention d'offrir 150 millions de dollars en obligations convertibles seniors à échéance 2030 par le biais d'une offre privée destinée aux investisseurs institutionnels qualifiés. La société accordera aux premiers acheteurs une option pour 15 millions de dollars supplémentaires en obligations. Les obligations pourront être converties en espèces, en actions ordinaires ou en une combinaison des deux à la discrétion d'Astronics. La société prévoit d'utiliser les produits pour rembourser des emprunts en cours dans le cadre de son prêt à terme et pour rembourser partiellement sa ligne de crédit renouvelable, ainsi que pour couvrir les frais liés à l'offre.
Astronics (NASDAQ: ATRO) hat Pläne angekündigt, 150 Millionen Dollar in wandelbaren Genussrechten mit Fälligkeit im Jahr 2030 über ein privates Angebot für qualifizierte institutionelle Käufer anzubieten. Das Unternehmen wird den ursprünglichen Käufern die Option auf zusätzliche 15 Millionen Dollar an Anleihen gewähren. Die Anleihen können nach Ermessen von Astronics in Bargeld, Stammaktien oder eine Kombination davon umgewandelt werden. Das Unternehmen plant, die Erlöse zu nutzen, um ausstehende Darlehen aus seiner langfristigen Kreditfazilität zurückzuzahlen und teilweise seine revolvierende Kreditfazilität zurückzuzahlen sowie um die mit dem Angebot verbundenen Kosten zu decken.
- Access to $150 million in new financing with potential additional $15 million
- Debt restructuring opportunity through repayment of existing term loan facility
- Flexible conversion terms allowing company discretion in settlement method
- Potential dilution of existing shareholders if notes are converted to common stock
- Increased long-term debt obligation through 2030
- Additional interest payment obligations
Insights
This
The flexibility of the conversion terms, allowing Astronics to settle in cash, stock, or a combination, provides important optionality in managing future dilution. However, the private placement nature and Rule 144A restrictions indicate this is primarily aimed at institutional investors. The additional
Key considerations for investors include potential dilution impact if converted to equity and the yet-to-be-determined interest rate and conversion terms. This refinancing could improve the company's debt profile but the overall impact will depend heavily on the final pricing terms.
The Notes will be Astronics’ senior unsecured obligations. The Notes will mature on March 15, 2030, unless earlier converted, redeemed or repurchased. Prior to December 15, 2029, the Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and, thereafter, the Notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, Astronics will satisfy its conversion obligations by paying and/or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election. The interest rate, the initial conversion rate and the other terms of the Notes will be determined upon pricing of the offering.
Astronics expects to use a portion of the net proceeds from the offering to repay all outstanding borrowings under its term loan facility. Astronics expects to use the remainder of the net proceeds from the offering to fund the repayment of a portion of its outstanding borrowings under its revolving credit facility and to pay fees and expenses in connection with the offering.
The Notes will be offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The offer and sale of the Notes and any shares of Astronics’ common stock issuable upon conversion of the Notes have not been registered under the Securities Act, or any state securities law, and the Notes and any such shares may not be offered or sold absent registration under, or pursuant to an exemption from, or in a transaction not subject to, the Securities Act and applicable state securities laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, including the Notes or any shares of Astronics’ common stock, nor shall there be any offer, solicitation or sale of any Notes or any such shares of Astronics’ common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Astronics
Astronics Corporation (NASDAQ: ATRO) serves the world’s aerospace, defense and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words “expect,” “anticipate,” “plan,” “may,” “will,” “estimate,” “feeling” or other similar expressions and include all statements with regard to the pricing and completion, timing and size of the proposed offering, the intended use of proceeds, and the terms of the Notes being offered. Because such statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially from what may be stated here include the trend in growth with passenger power and connectivity on airplanes, the state of the aerospace and defense industries, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes and delivery schedules, the demand for and market acceptance of new or existing aircraft which contain the Company’s products, the impact of regulatory activity and public scrutiny on production rates of a major
View source version on businesswire.com: https://www.businesswire.com/news/home/20241125946182/en/
Company:
David C. Burney
Executive Vice President and CFO
invest@astronics.com
+1.716.805.1599
Investor:
Alliance Advisors IR
Deborah K. Pawlowski
Senior Managing Director
dpawlowski@allianceadvisors.com
+1.716.843.3908
Source: Astronics Corporation
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