AeroVironment stabilizes after upsized $1.5 bln stock, convertible bond offerings

Shares of military drone maker AeroVironment AVAV.O up 10 cents to $252.50 on light premarket volume after above-target capital raise

Arlington, Virginia-based firm late Tues announced pricing ~3.5 mln shares at $248 and $650 mln 0% 5-yr convertible bonds (CBs) resulting in ~$1.5 bln gross raise

AVAV shares on Tues fell >11% from record highs to close at $252.40, their biggest one-day pct drop since early Dec, after co launched $750 mln stock and $600 mln CB deals

Initial conversion price on CBs set at $322.40, 30% above stock offering price and ~28% above stock's last close

It plans to use net proceeds of approx $1.47 from the offerings to repay debt under term loan and its revolver, remainder for general purposes, including to increase manufacturing capacity

JP Morgan and BofA are lead bookrunners for both offerings

AVAV shares gained ~31% over past 5 sessions since co posted fiscal Q4 beat and provided FY26 forecast inclusive of BlueHalo acquisition

Through Tues, shares up 64% YTD

Avg rating among 8 analysts is "strong buy"; median PT of $225 up from $190 a month ago - LSEG data