Axon talks $500 million five-year convertible notes to yield 0.5%-1%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., Dec. 5 – Axon Enterprise Inc. plans to price $500 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 0.5% to 1% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $75 million.

The notes are non-callable until Dec. 22, 2025 and then subject to a 130% hurdle.

There is dividend and takeover protection.

The notes will be settled in cash up to the principal amount with the remaining amount to be settled in cash, shares or a combination of both at the company’s option.

In connection with the offering, the company will enter into convertible note hedge and warrant transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes, which may include acquisitions.

Axon is a Scottsdale, Ariz.-based global public safety technology company.

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