Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
EAST AURORA, N.Y. - Astronics Corporation (NASDAQ:ATRO), whose stock has surged over 140% year-to-date according to InvestingPro data, announced Tuesday its intention to offer $210 million in convertible senior notes due 2031 to qualified institutional buyers through a private placement, subject to market conditions. The aerospace technology company, currently valued at $1.36 billion, is trading near its 52-week high of $39.50.
The aerospace technology supplier plans to use proceeds to partially refinance its outstanding 5.500% Convertible Senior Notes due 2030 and to purchase capped call transactions designed to reduce potential share dilution until at least a 90% premium to the current stock price. InvestingPro analysis shows the company operates with a moderate debt level and maintains strong liquidity, with a healthy current ratio of 3.04.
The new notes will mature on January 15, 2031, unless earlier converted, redeemed or repurchased. They will be convertible under certain conditions before October 15, 2030, and at any time thereafter until two days before maturity.
Upon conversion, Astronics will pay cash up to the principal amount and satisfy any remainder with cash, shares, or a combination of both. The interest rate and initial conversion rate will be determined at pricing.
The company also expects to grant initial purchasers an option to buy up to an additional $15 million in notes. These additional proceeds would fund more capped call transactions and general corporate purposes, including repaying borrowings under its ABL Revolving Credit Facility.
In connection with the offering, Astronics plans to enter privately negotiated capped call transactions with financial institutions to reduce potential dilution from note conversions. These transactions are expected to cover the number of common shares initially underlying the notes, subject to anti-dilution adjustments.
Concurrently with the pricing, the company expects to repurchase a portion of its 2030 notes through privately negotiated transactions. The terms will depend on factors including Astronics’ stock price and the trading price of the 2030 notes.
The notes and any shares issuable upon conversion have not been registered under the Securities Act and may not be offered or sold without registration or an applicable exemption.
This information is based on a press release statement from Astronics Corporation. According to InvestingPro analysis, analysts maintain a bullish outlook on the stock, though it appears slightly overvalued at current levels. For deeper insights into Astronics’ financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 15 additional ProTips and detailed financial metrics.
In other recent news, Astronics Corporation reported its second-quarter 2025 earnings, significantly surpassing expectations. The company achieved an earnings per share (EPS) of $0.38, which exceeded the forecasted $0.29 by 31.03%. Additionally, Astronics reported revenue of $204.67 million, slightly above the anticipated $203.94 million. Despite these positive financial results, the stock saw a decline in after-hours trading. These developments highlight Astronics’ strong performance in the recent quarter. Investors may find it noteworthy that the company’s earnings and revenue have outperformed analyst projections. Such results often draw attention from various analyst firms, though specific upgrades or downgrades were not mentioned in the recent reports.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.