AeroVironment shares drop 7% on $1.35B stock, convertible debt offering

June 30, 2025 02:17 PM PDT | By EODHD

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AeroVironment shares drop 7% on $1.35B stock, convertible debt offering — Image source: Kalkine Media

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[Regular Australian Army AeroVironment Wasp III UAV launch, flying and recovery demonstration] James Rolevink/iStock Editorial via Getty Images AeroVironment (NASDAQ:AVAV [https://seekingalpha.com/symbol/AVAV]) shares fell 7% in extended trading Monday after the defense technology company announced plans to raise as much as $1.35 billion through public offerings of stock and convertible debt. The company said it intends to offer $750 million in common stock and $600 million in convertible senior notes due 2030. The offerings include options for underwriters to purchase up to an additional $112.5 million in stock and $90 million in notes to cover potential over-allotments. AeroVironment (NASDAQ:AVAV [https://seekingalpha.com/symbol/AVAV]) said proceeds from the offerings will be used to repay existing term loan debt and outstanding borrowings under its revolving credit facility, with any remaining funds earmarked for general corporate purposes, including expanding manufacturing capacity. The offerings aren't contingent on one another, and their completion depends on market conditions, the company said.

Shares of AeroVironment (AVAV [https://seekingalpha.com/symbol/AVAV]), a key supplier of unmanned aircraft systems and loitering munitions, have rallied in recent months on heightened demand for defense technologies such as aerial drones. MORE ON AEROVIRONMENT * Building The Pentagon's Future Force: AeroVironment Delivers [https://seekingalpha.com/article/4797235-building-the-pentagons-future-force-aerovironment-stock-q4-delivers] * AeroVironment, Inc. (AVAV) Q4 2025 Earnings Call Transcript [https://seekingalpha.com/article/4796996-aerovironment-inc-avav-q4-2025-earnings-call-transcript] * AeroVironment, Inc. 2025 Q4 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4796984-aerovironment-inc-2025-q4-results-earnings-call-presentation] * AeroVironment soars as analysts cheer strong results, BlueHalo upside [https://seekingalpha.com/news/4462492-aerovironment-soars-as-analysts-cheer-strong-results-bluehalo-upside] * AeroVironment shares jump on record bookings, revenue gains [https://seekingalpha.com/news/4462163-aerovironment-shares-jump-on-record-bookings-revenue-gains]

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