Axon Enterprise, Inc. entered into separate, privately negotiated exchange agreements with certain holders of its 0.50% convertible senior notes due 2027. Pursuant to these agreements, Axon will exchange approximately $407.5 million aggregate principal amount of the notes. The exchange consideration will consist of cash and shares of Axon's common stock.
Assuming a per share volume-weighted average price of $499.31 for Axon's common stock during the averaging period, the company expects to issue approximately 1.0 million shares of common stock upon consummation of the exchanges. The cash portion of the exchange consideration will cover the principal amount and accrued unpaid interest on the notes being exchanged.
Following the expected closing of these exchanges on or about March 13, 2025, approximately $282.5 million aggregate principal amount of the 2027 convertible notes will remain outstanding. This strategic financial maneuver aims to reduce the company's convertible debt obligations and manage its capital structure.
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