Astronics Faces Financial Peril Over Convertible Notes Obligations

Astronics (ATRO) has disclosed a new risk, in the Debt & Financing category.

Astronics faces a significant financial risk due to its potential inability to raise the necessary funds to repurchase or settle conversions of its Convertible Notes in the event of a fundamental change. Issued on December 3, 2024, these notes amount to $165 million with a fixed interest rate of 5.500% per annum. The company may be obligated to make substantial cash payments if holders of these notes exercise their rights, a situation complicated by constraints from the ABL Revolving Credit Facility and potential legal or regulatory limitations. Failure to meet these obligations could trigger defaults under the indenture governing the Convertible Notes and potentially under other existing or future debt agreements.

The average ATRO stock price target is $23.00, implying -6.12% downside potential.

To learn more about Astronics’ risk factors, click here.