Astronics Corporation Announces Pricing of $150 Million Convertible Senior Notes Offering
Astronics (NASDAQ: ATRO) has announced the pricing of $150 million convertible senior notes due 2030 in a private offering. The notes will bear interest at 5.500% per year, payable semi-annually, and will mature on March 15, 2030. The initial conversion rate is 43.6814 shares per $1,000 principal amount, equivalent to a conversion price of $22.89 per share, representing a 30% premium over the current stock price of $17.61. The company plans to use the proceeds to repay its term loan facility and a portion of its revolving credit facility.
Astronics (NASDAQ: ATRO) ha annunciato il prezzo di 150 milioni di dollari in note convertibili senior con scadenza nel 2030 in un'offerta privata. Le note porteranno un interesse del 5,500% all'anno, pagabile semestralmente, e scadranno il 15 marzo 2030. Il tasso di conversione iniziale è di 43,6814 azioni per ogni 1.000 dollari di valore nominale, equivalente a un prezzo di conversione di 22,89 dollari per azione, rappresentando un premio del 30% rispetto al prezzo attuale delle azioni di 17,61 dollari. La società prevede di utilizzare i proventi per ripagare la propria linea di prestito a termine e una parte della propria linea di credito rotativo.
Astronics (NASDAQ: ATRO) ha anunciado la fijación de 150 millones de dólares en notas convertibles senior con vencimiento en 2030 en una oferta privada. Las notas tendrán un interés del 5.500% anual, pagadero semestralmente, y vencerán el 15 de marzo de 2030. La tasa de conversión inicial es de 43,6814 acciones por cada 1.000 dólares de monto principal, equivalente a un precio de conversión de 22,89 dólares por acción, lo que representa una prima del 30% sobre el precio actual de la acción de 17,61 dólares. La compañía planea utilizar los ingresos para pagar su línea de préstamo a plazo y una parte de su línea de crédito renovable.
Astronics (NASDAQ: ATRO)는 2020년 만기인 1억 5천만 달러 규모의 전환 상환 사채의 가격을 사모펀드 방식으로 발표했습니다. 이 사채는 연 5.500%의 이자를 지급하며, 반기마다 지급되고 2030년 3월 15일에 만기가 됩니다. 초기 전환율은 1,000달러의 원금에 대해 43.6814주로, 주당 전환 가격이 22.89달러로 현재 주식 가격 17.61달러에 비해 30%의 프리미엄을 나타냅니다. 이 회사는 수익금을 이용하여 기한부 대출 및 회전 신용 대출의 일부를 상환할 계획입니다.
Astronics (NASDAQ: ATRO) a annoncé le prix de 150 millions de dollars en obligations convertibles senior arrivant à échéance en 2030 lors d'une offre privée. Les obligations porteront un intérêt de 5,500% par an, payable semestriellement, et arriveront à échéance le 15 mars 2030. Le taux de conversion initial est de 43,6814 actions pour 1 000 dollars de valeur nominale, ce qui équivaut à un prix de conversion de 22,89 dollars par action, représentant une prime de 30% par rapport au prix actuel de l'action à 17,61 dollars. L'entreprise prévoit d'utiliser les recettes pour rembourser son prêt à terme et une partie de sa facilité de crédit renouvelable.
Astronics (NASDAQ: ATRO) hat die Preisgestaltung von 150 Millionen Dollar an wandelbaren vorrangigen Anleihen mit Laufzeit bis 2030 in einer Privatplatzierung bekannt gegeben. Die Anleihen werden einen Zinssatz von 5,500% pro Jahr haben, der halbjährlich zahlbar ist, und am 15. März 2030 fällig werden. Der anfängliche Umwandlungssatz liegt bei 43,6814 Aktien pro 1.000 Dollar Nennbetrag, was einem Umwandlungspreis von 22,89 Dollar pro Aktie entspricht und eine Prämie von 30% auf den aktuellen Aktienpreis von 17,61 Dollar darstellt. Das Unternehmen plant, die Erlöse zur Rückzahlung seiner Festdarlehensfazilität und eines Teils seiner revolvierenden Kreditfazilität zu verwenden.
- Successful pricing of $150 million convertible notes offering
- 30% conversion premium over current stock price indicates market confidence
- Debt refinancing opportunity through proceeds
- Additional debt burden with 5.500% interest rate
- Potential future dilution for existing shareholders upon conversion
- Increased interest expense will affect cash flow
Insights
This
The strategic use of proceeds to refinance existing debt suggests a liability management focus rather than growth capital. This restructuring could improve the company's debt profile by extending maturities to 2030 and potentially reducing interest expenses. The additional
The conversion feature at
The Notes will be Astronics’ senior unsecured obligations. The Notes will mature on March 15, 2030, unless earlier converted, redeemed or repurchased. The Notes will bear interest at a rate of
Prior to the close of business on the business day immediately preceding December 15, 2029, noteholders will have the right to convert their Notes only upon the occurrence of certain events. On or after December 15, 2029, noteholders may convert all or any portion of their Notes at any time at their election 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 initial conversion rate for the Notes is 43.6814 shares of common stock per
The Notes will not be redeemable before March 20, 2028. The Notes will be redeemable, in whole or in part, for cash at Astronics’ option at any time, and from time to time, on or after March 20, 2028 and prior to the 51st scheduled trading day immediately preceding the maturity date, if the last reported sale price per share of Astronics’ common stock has been at least
If a "fundamental change" (as will be defined in the indenture for the Notes) occurs, then, subject to limited exceptions, noteholders may require Astronics to repurchase their Notes for cash. The repurchase price will be equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the applicable repurchase date.
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 were 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 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/20241126969679/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
FAQ
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