Axon Enterprise said Wednesday it has priced its offering of $1B aggregate principal amount of 0% convertible senior notes due 2031. The sale to the underwriters is expected to settle on September 18, 2026, subject to customary closing conditions, and is expected to result in approximately $986.0 million in net proceeds to Axon. The notes carry an initial conversion rate of 1.5336 Axon shares per $1,000 principal amount, equivalent to a conversion price of about $652.06 per share, and noteholders can convert under specified conditions before June 15, 2031, and freely convert thereafter until shortly before maturity. In connection with the pricing, Axon entered into privately negotiated capped call transactions with certain of the underwriters and/or their respective affiliates and other financial institutions, with an initial cap price of $1,049.94, a premium of 137.5% over the last reported sale price of Axon's common stock of $442.08 per share on Nasdaq on September 15. Axon shares closed at $442.08, down $48.10 from the prior close, on volume of approximately 2.76 million shares, nearly four times the stock's average daily volume.
Axon Enterprise Inc.Axon priced $1B 0% convertible notes due 2031 with capped calls, a financing event that is dilutive but low-cost.
