Axon completes $1,150.0 million convertible notes offering due 2031
Underwriters fully exercised a $150.0 million over-allotment option, taking the zero-coupon notes past the original $1,000 million size.
Published
Chart: AXON, one-minute prices, three sessions
Axon Enterprise has issued $1,150.0 million in aggregate principal of 0% convertible senior notes due 2031. The offering closed on September 18, 2026, after underwriters exercised in full a $150.0 million over-allotment option on top of the original $1,000 million deal.
The notes carry an initial conversion price of about $652.06 per share and mature on September 15, 2031. Alongside the offering, Axon entered into capped call transactions costing roughly $114.9 million, with a cap price of $1,049.94 per share, a premium of 137.5% over the stock's last reported sale price of $442.08 on September 15, 2026.
Axon said it plans to use the remaining proceeds for general corporate purposes, including possible acquisitions or investments.
The size of the premium and the choice of a zero-coupon structure paired with a capped call point to a defensive piece of financing rather than a bet on near-term share gains. Companies use this combination, borrowing at no interest while hedging future dilution, when they want cash on hand for deals but see their stock as fully valued against the pace at which that cash will be put to work.