Axon prices $1 billion of zero-coupon convertible notes

Axon ($AXON) priced $1 billion of convertible senior notes carrying no regular interest and maturing in 2031. Initial purchasers can buy an additional $150 million. The initial conversion price is approximately $652.06 per share, with settlement expected subject to customary closing conditions. Pricing does not yet mean the financing has closed.

Estimated net proceeds are about $986 million before approximately $99.9 million of capped-call transaction costs. Axon plans to use the remaining capital for general corporate purposes, potentially including growth investment and acquisitions. The capped calls are intended to reduce dilution or offset certain payments when notes convert, but do not eliminate all potential shareholder dilution. The announcement provides financing terms, not a commitment to a particular new acquisition.

Sources:

• Axon — convertible notes pricing announcement