Astronics Corporation announced the pricing of $150 million aggregate principal amount of 5.500% convertible senior notes due 2030 in a private offering. The notes will bear interest at a rate of 5.500% per year, payable semi-annually, with maturity set for March 15, 2030. This financing initiative aims to bolster the company's financial flexibility.
The initial conversion rate for the notes is 43.6814 shares of common stock per $1,000 principal amount, which translates to an initial conversion price of approximately $22.89 per share. This represents an approximately 30% conversion premium over the last reported sale price of $17.61 per share of Astronics' common stock on November 25, 2024.
Astronics expects to use a portion of the net proceeds from this offering to repay all outstanding borrowings under its term loan facility. The remainder of the proceeds will be used to fund the repayment of a portion of its outstanding borrowings under its revolving credit facility and to cover offering-related fees and expenses.
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