Astronics Corporation (NASDAQ: ATRO) (“Astronics” or the “Company”) has announced its intention to offer $150 million in aggregate principal amount of convertible senior notes due 2030 (the “Notes”) in a private placement. This offering will be made to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). Additionally, Astronics plans to grant the initial purchasers an option to buy up to an additional $15 million in Notes within 13 days of the initial issuance.
The Notes will represent Astronics’ senior unsecured obligations and are set to mature on March 15, 2030, unless earlier converted, redeemed, or repurchased. Before December 15, 2029, conversion of the Notes will be contingent on specific conditions and time periods. After that date, the Notes may be converted at any time until the second scheduled trading day before maturity. Upon conversion, Astronics can choose to fulfill its obligations by delivering cash, shares of its common stock, or a combination of both. The interest rate, initial conversion rate, and other terms of the Notes will be determined during the pricing of the offering.
Proceeds from the offering are expected to be used to repay all outstanding borrowings under Astronics’ term loan facility. The remaining funds will go toward reducing borrowings under the Company’s revolving credit facility and covering fees and expenses associated with the offering.
The Notes and any shares of common stock issuable upon their conversion will not be registered under the Securities Act or state securities laws. As a result, they cannot be offered or sold without registration or an applicable exemption from such requirements.
This announcement is not an offer to sell or solicit the purchase of securities, including the Notes or common stock, and such activities are prohibited in jurisdictions where they would be unlawful.
About Astronics
Astronics Corporation (NASDAQ: ATRO) serves the world’s aerospace, defense and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics.