$AXON · AXON ENTERPRISE, INC.
Axon Enterprise entered into a Second Amendment to its credit agreement on September 15, 2026, increasing its revolving credit facility from $300 million to $500 million with a $150 million accordion. The amendment is conditioned on the closing of a concurrent 0% Convertible Notes offering due 2031. The revolver maturity extends to up to five years (expected September 18, 2031), with early maturity triggers linked to the Convertible Notes' repurchase date and stock price thresholds.
- Revolving credit facility increased from $300M to $500M, with an additional $150M accordion option.
- Second Amendment effective upon consummation of a 0% Convertible Notes offering due 2031.
- Maturity extended to up to five years from closing, expected September 18, 2031, with early triggers tied to Convertible Notes.
- Interest on revolver: SOFR + 1.25%–1.75%, based on net leverage ratio; commitment fee 0.15% on unused amounts.
- Maximum net leverage ratio covenant of 3.50x, with a 1.00x step-up for four quarters post-permitted acquisition.
Extended-hours trading shows AXON at $473.67, down 3.37% from the regular close of $490.20. The dip may reflect initial digestion of the convertible notes offering and potential dilution concerns, though the 0% coupon and revolver upsizing signal strong lender confidence.
Axon is tapping capital markets with a dual-track structure — revolver expansion plus convertible notes — signaling either an acquisition pipeline or aggressive growth investment ahead.
Axon joins a wave of growth companies using 0% convertible notes to raise capital at minimal cash cost, trading potential equity dilution for cheap leverage — a structure popular in the defense-tech and SaaS sectors in 2025-2026.
The revolver maturity can accelerate to 91 days before the Convertible Notes' March 20, 2031 optional repurchase date if certain stock price conditions are met and notes aren't refinanced — creating a refinancing cliff risk.
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