Axon upsizes senior notes offering to $1.75 billion

SCOTTSDALE, Ariz. – Axon, known for its public safety technology and boasting over $2 billion in annual revenue, has upsized its private offering to $1.75 billion in senior notes, the company disclosed Monday. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 2.3. This move exceeds the initial $1.5 billion target, with the offering comprising $1 billion of 6.125% senior notes due 2030 and $750 million of 6.250% senior notes due 2033.

The proceeds are earmarked for general corporate purposes, potentially including the repurchase or redemption of Axon’s 0.50% Convertible Senior Notes due 2027, and to support the company’s growth strategies such as acquiring or investing in new product lines, services, or technologies. The company has demonstrated strong execution capability, with InvestingPro data showing impressive revenue growth of 33.4% in the last twelve months. The sale of the notes is anticipated to close on March 11, 2025, pending customary closing conditions.

These general senior unsecured obligations will not initially be backed by Axon’s subsidiaries. However, subsidiaries that guarantee Axon’s existing credit facilities and certain other debts will also guarantee these notes, with some exceptions. Interest on the 2030 notes will be paid semiannually starting September 15, 2025, and the notes will mature on March 15, 2030. Similarly, the 2033 notes will have their first interest payment on the same date in September and will mature on March 15, 2033.

The notes are being offered to qualified institutional buyers and non-U.S. persons outside the United States, in accordance with Rule 144A and Regulation S under the Securities Act, respectively. These notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold without registration or an applicable exemption.

Axon emphasizes that this press release is solely for informational purposes and does not constitute an offer to sell or a solicitation to buy the notes or any other security.

The company has set a bold goal to halve gun-related deaths between police and the public by 2033 and is actively developing its suite of hardware devices and cloud software solutions to modernize policing. Axon’s expanding global customer base spans various sectors of public safety, including law enforcement, fire services, corrections, emergency medical services, and the justice sector. With a market capitalization of $41 billion and strong gross profit margins of nearly 60%, Axon demonstrates significant market leadership. For deeper insights into Axon’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 top US stocks.

This news article is based on a press release statement from Axon.

In other recent news, Axon Enterprise announced a $1.5 billion senior notes offering aimed at institutional buyers to support general corporate purposes, including potential repurchases of existing notes and growth investments. This offering is part of Axon’s strategic financial planning and is not a public solicitation. Meanwhile, Axon’s fourth-quarter performance has drawn attention from several analyst firms. TD Cowen raised its price target for Axon to $725, citing robust quarterly results and projected revenue growth that could exceed expectations. Conversely, Craig-Hallum adjusted its target to $600, maintaining a Hold rating while acknowledging Axon’s strong earnings and record bookings.

Needham also maintained a Buy rating with a $600 price target, highlighting Axon’s $10.1 billion contracted backlog and consistent growth across its product lines. JPMorgan increased its target to $665, crediting Axon’s strong financial performance and significant demand across its product portfolio, including Axon Cloud & Services. Axon’s management addressed investor concerns about federal funding and partnership changes, providing a positive revenue outlook for 2025. These developments reflect Axon’s strategic positioning and growth prospects as the company continues to expand its market reach and product offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.