ASTRONICS closes $225 million convertible notes offering, retires debt

Astronics Corporation (NASDAQ: ATRO) completed the sale of $225 million in convertible senior notes due 2031 with a 0% interest rate, the company announced. The offering included the full exercise of initial purchasers' option for an additional $15 million.

The aerospace and defense supplier used approximately $189.8 million of net proceeds, combined with $85 million in borrowings and $11 million in cash, to repurchase $132 million in aggregate principal amount of its existing convertible senior notes due 2030. Following the repurchase, about $33 million of the 2030 notes remain outstanding.

The new notes carry an initial conversion rate of 18.2243 shares per $1,000 principal amount, representing a conversion price of $54.87 per share. This reflects a 25% premium over the $43.90 volume-weighted average price on September 10, 2025.

Astronics also purchased capped call transactions using approximately $26.9 million of proceeds, resulting in an effective conversion price of $83.41 per share, which represents a 90% premium over the September 10 reference price.

"This transaction represents a significant optimization of our capital structure," said Peter Gundermann, chairman, president and CEO. "We have replaced higher-cost convertible debt with the new $225 million 0% convertible notes paired with a capped call that measurably raises the conversion premium."

The company stated it plans to restructure its asset-based revolver into a revolving line of credit. The notes were offered to qualified institutional buyers under Rule 144A and have not been registered under the Securities Act.

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