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[FWP] AeroVironment, Inc. Free Writing Prospectus

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Rhea-AI Filing Summary

Barclays Bank PLC is marketing a new two-year structured note—Capped Buffer GEARS—tied to the price performance of the S&P 500® Index. Each $10 Security offers 2.0× leveraged participation in any positive index return, but gains are capped at 21.65-23.65% (exact rate set on the July 15, 2025 Trade Date). Investors receive:

  • Full principal repayment at maturity if the Index is flat or down less than 10% (Buffer).
  • Loss exposure of 1% for every 1% decline beyond the 10% Buffer, up to a maximum 90% loss of principal.

Key indicative terms include a Downside Threshold at 90% of the Initial Index Level, Upside Gearing of 2.0, no periodic coupons, and maturity on July 20, 2027. The notes price at par ($10), yet Barclays� internal models estimate fair value between $9.459-$9.959, reflecting embedded selling concessions, hedging costs and issuer profit. UBS Financial Services acts as placement agent for fee-based advisory accounts; no sales commission is paid.

Risk considerations dominate the disclosure: the notes are unsecured, unsubordinated obligations of Barclays and subject to U.K. bail-in powers, market risk of the S&P 500, limited liquidity (no exchange listing and discretionary secondary market making only), tax uncertainty (potential prepaid forward contract treatment), and valuation risk (secondary prices likely below issue price).

Illustrative payoff scenarios show that a 30% Index gain yields the maximum $12.165 payment, while a 60% decline results in only $5.00—demonstrating the capped upside and buffered but significant downside.

Barclays Bank PLC sta promuovendo un nuovo titolo strutturato biennale—Capped Buffer GEARS—collegato alla performance del prezzo dell'indice S&P 500®. Ogni titolo da 10$ offre una partecipazione con leva 2.0× su qualsiasi rendimento positivo dell'indice, ma i guadagni sono limitati tra il 21,65% e il 23,65% (tasso esatto fissato il 15 luglio 2025, data di negoziazione). Gli investitori ricevono:

  • Rimborso integrale del capitale alla scadenza se l'indice rimane stabile o scende meno del 10% (Buffer).
  • Esposizione alla perdita dell'1% per ogni 1% di calo oltre il 10% di Buffer, fino a una perdita massima del 90% del capitale.

I termini indicativi principali includono una soglia di ribasso al 90% del livello iniziale dell'indice, una leva al rialzo di 2.0, nessuna cedola periodica e scadenza il 20 luglio 2027. I titoli vengono emessi a valore nominale (10$), ma i modelli interni di Barclays stimano un valore equo tra 9,459$ e 9,959$, riflettendo commissioni di vendita incorporate, costi di copertura e margine dell’emittente. UBS Financial Services agisce come agente di collocamento per conti di consulenza a tariffa; non sono previste commissioni di vendita.

Considerazioni sul rischio sono al centro dell’informativa: i titoli sono obbligazioni non garantite e non subordinate di Barclays, soggette ai poteri di bail-in del Regno Unito, al rischio di mercato dell’S&P 500, a liquidità limitata (nessuna quotazione in borsa e mercato secondario discrezionale), incertezza fiscale (possibile trattamento come contratto prepaid forward) e rischio di valutazione (i prezzi secondari probabilmente inferiori al prezzo di emissione).

Scenari di rendimento illustrativi mostrano che un guadagno del 30% dell’indice produce un pagamento massimo di 12,165$, mentre un calo del 60% si traduce in soli 5,00$—dimostrando il rialzo limitato e il ribasso mitigato ma significativo.

Barclays Bank PLC está lanzando una nueva nota estructurada a dos años—Capped Buffer GEARS—vinculada al desempeño del precio del índice S&P 500®. Cada valor de 10$ ofrece una participación apalancada de 2.0× en cualquier rendimiento positivo del índice, pero las ganancias están limitadas entre el 21,65% y el 23,65% (tasa exacta establecida el 15 de julio de 2025, fecha de negociación). Los inversores reciben:

  • Reembolso total del principal al vencimiento si el índice se mantiene estable o cae menos del 10% (Buffer).
  • Exposición a pérdidas del 1% por cada 1% de caída más allá del 10% de Buffer, hasta una pérdida máxima del 90% del capital.

Los términos indicativos clave incluyen un umbral de caída al 90% del nivel inicial del índice, apalancamiento al alza de 2.0, sin cupones periódicos y vencimiento el 20 de julio de 2027. Las notas se emiten a la par (10$), pero los modelos internos de Barclays estiman un valor justo entre 9,459$ y 9,959$, reflejando concesiones de venta incorporadas, costos de cobertura y beneficio del emisor. UBS Financial Services actúa como agente colocador para cuentas de asesoría con tarifa; no se pagan comisiones de venta.

Consideraciones de riesgo dominan la divulgación: las notas son obligaciones no garantizadas y no subordinadas de Barclays, sujetas a poderes de rescate en el Reino Unido, riesgo de mercado del S&P 500, liquidez limitada (sin cotización en bolsa y mercado secundario discrecional), incertidumbre fiscal (posible tratamiento como contrato prepaid forward) y riesgo de valoración (precios secundarios probablemente por debajo del precio de emisión).

Escenarios ilustrativos de pago muestran que una ganancia del 30% en el índice produce el pago máximo de 12,165$, mientras que una caída del 60% resulta en solo 5,00$—demostrando el límite en la ganancia y la protección amortiguada pero significativa en la pérdida.

바클레이� 은� PLC� S&P 500® 지수의 가� 성과� 연동� 새로� 2� 만기 구조� 상품� Capped Buffer GEARS� 출시하고 있습니다. 각각 10달러 증권은 지수의 긍정� 수익� 대� 2.0� 레버리지 참여� 제공하지�, 수익은 21.65%에서 23.65% 사이� 제한됩니�(정확� 비율은 2025� 7� 15� 거래일에 확정). 투자자는 다음� 받습니다:

  • 지수가 변� 없거� 10% 미만 하락 � 만기 � 원금 전액 상환(버퍼).
  • 10% 버퍼� 초과하는 하락� 대� 1% 손실 노출, 최대 원금� 90% 손실까지.

주요 지� 조건으로� 초기 지� 수준� 90%� 해당하는 하락 한계, 2.0� 상승 레버리지, 정기 쿠폰 없음, 2027� 7� 20� 만기가 포함됩니�. � 노트� 액면가(10달러)� 발행되지�, 바클레이� 내부 모델은 판매 수수�, 헤지 비용 � 발행� 이익� 반영하여 공정 가치를 9.459달러에서 9.959달러 사이� 추정합니�. UBS 금융 서비스는 수수� 기반 자문 계좌� 위한 배치 에이전트 역할� 하며 판매 수수료는 지급되지 않습니다.

위험 고려 사항� 공개� 핵심입니�: � 노트� 바클레이즈의 무담� 비후순위 채무이며, 영국� 베일� 권한, S&P 500 시장 위험, 제한� 유동�(거래� 상장 없음 � 임의� 2� 시장 조성), 세금 불확실성(선불 선도 계약 처리 가능성), 평가 위험(2� 가격이 발행가 이하� 가능성)� 노출됩니�.

예시 수익 시나리오� 따르� 지수가 30% 상승하면 최대 12.165달러� 지급하�, 60% 하락 시에� 5.00달러� 지급되� 제한� 상승� 완충되었지� 상당� 하락 위험� 보여줍니�.

Barclays Bank PLC commercialise une nouvelle note structurée de deux ans—Capped Buffer GEARS—liée à la performance du prix de l’indice S&P 500®. Chaque titre de 10$ offre une participation avec un effet de levier de 2,0× sur tout rendement positif de l’indice, mais les gains sont plafonnés entre 21,65 % et 23,65 % (taux exact fixé le 15 juillet 2025, date de négociation). Les investisseurs bénéficient :

  • Du remboursement intégral du capital à l’échéance si l’indice est stable ou en baisse de moins de 10 % (Buffer).
  • D’une exposition à la perte de 1 % pour chaque baisse de 1 % au-delà du Buffer de 10 %, jusqu’� une perte maximale de 90 % du capital.

Les principaux termes indicatifs incluent un seuil de baisse à 90 % du niveau initial de l’indice, un effet de levier à la hausse de 2,0, aucune coupon périodique, et une échéance au 20 juillet 2027. Les notes sont émises à leur valeur nominale (10$), mais les modèles internes de Barclays estiment une juste valeur comprise entre 9,459$ et 9,959$, reflétant les commissions de vente intégrées, les coûts de couverture et la marge de l’émetteur. UBS Financial Services agit en tant qu’agent de placement pour les comptes de conseil facturés ; aucune commission de vente n’est versée.

Les considérations de risque dominent la divulgation : les notes sont des obligations non garanties et non subordonnées de Barclays, soumises aux pouvoirs de renflouement du Royaume-Uni, au risque de marché du S&P 500, à une liquidité limitée (pas de cotation en bourse et marché secondaire discrétionnaire), à une incertitude fiscale (traitement possible en tant que contrat prepaid forward) et au risque d’évaluation (les prix secondaires seront probablement inférieurs au prix d’émission).

Des scénarios de rendement illustratifs montrent qu’un gain de 30 % de l’indice génère un paiement maximal de 12,165$, tandis qu’une baisse de 60 % ne donne lieu qu’� 5,00$—démontrant le plafond des gains et la protection amortie mais significative contre les pertes.

Barclays Bank PLC bietet eine neue zweijährige strukturierte Note an—Capped Buffer GEARS—die an die Kursentwicklung des S&P 500® Index gekoppelt ist. Jede 10$-Anleihe bietet eine 2,0-fache Hebelwirkung auf positive Indexrenditen, jedoch sind die Gewinne auf 21,65-23,65% begrenzt (genauer Satz wird am 15. Juli 2025, dem Handelstag, festgelegt). Anleger erhalten:

  • Volle Rückzahlung des Kapitals bei Fälligkeit, wenn der Index unverändert bleibt oder weniger als 10% fällt (Buffer).
  • Verlustaussetzung von 1% für jeden 1% Rückgang über den 10% Buffer hinaus, bis zu maximal 90% Kapitalverlust.

Wichtige indikative Bedingungen umfassen eine Abwärtsschwelle bei 90% des Anfangsindexniveaus, einen Aufwärtshebel von 2,0, keine periodischen Kupons und eine Fälligkeit am 20. Juli 2027. Die Notes werden zum Nennwert (10$) ausgegeben, doch interne Modelle von Barclays schätzen den fairen Wert zwischen 9,459$ und 9,959$, was eingebettete Verkaufsprovisionen, Absicherungskosten und Emittentenmarge widerspiegelt. UBS Financial Services fungiert als Platzierungsagent für gebührenbasierte Beratungskonten; es werden keine Verkaufsprovisionen gezahlt.

Risikohinweise prägen die Offenlegung: Die Notes sind unbesicherte, nicht nachrangige Verbindlichkeiten von Barclays und unterliegen den Bail-in-Maßnahmen des Vereinigten Königreichs, dem Marktrisiko des S&P 500, eingeschränkter Liquidität (keine Börsennotierung und diskretionärer Sekundärmarkt), steuerlicher Unsicherheit (mögliche Behandlung als Prepaid-Forward-Kontrakt) und Bewertungsrisiko (Sekundärpreise wahrscheinlich unter dem Ausgabepreis).

Beispielhafte Auszahlungs-Szenarien zeigen, dass ein 30%iger Indexanstieg die maximale Zahlung von 12,165$ ergibt, während ein 60%iger Rückgang nur 5,00$ zur Folge hat—was die begrenzte Aufwärtschance und den gepufferten, aber erheblichen Abwärtsrisiko verdeutlicht.

Positive
  • 2.0× Upside Gearing provides leveraged participation in moderate index rallies, enhancing potential returns versus a direct S&P 500 investment within the capped range.
  • 10% downside buffer offers partial protection against small to mid-single-digit index declines, fully preserving principal if losses remain within the buffer.
  • Short 2-year maturity limits duration and interest-rate exposure compared with longer-dated structured products.
Negative
  • Maximum Gain capped at 21.65-23.65%, limiting upside even if the S&P 500 appreciates strongly over two years.
  • Principal loss up to 90% if the index falls more than 10%, exposing investors to severe equity-like downside.
  • Issuer credit & bail-in risk: payments depend on Barclays� solvency; U.K. resolution authority can write down the notes.
  • Estimated fair value below issue price ($9.459-$9.959), meaning investors incur an immediate mark-to-model loss at settlement.
  • No periodic interest and limited liquidity; notes are not exchange-listed and market making is discretionary.
  • Tax treatment uncertain; IRS could challenge prepaid forward characterization, altering after-tax returns.

Insights

TL;DR Short-dated equity-linked note offers 2× upside with 10% buffer but capped at ~22%; downside, liquidity and credit risks are material.

The product targets advisory clients seeking leveraged, buffered equity exposure in a tax-efficient wrapper. Relative to traditional 1.0× buffered notes, the 2.0 Upside Gearing is attractive, yet the cap limits effective annualized return to roughly 10-11% if held to maturity. The 10% buffer is modest; historical two-year drawdowns of the S&P 500 exceed this threshold roughly 25-30% of the time, meaning probability-weighted loss potential is non-trivial. Note value is further eroded by a modeled OAS of ~45-55 bps versus par, implying an immediate 0.4-0.5 point premium paid by investors. Lack of coupon income and no secondary market listing reduce flexibility. Overall, payoff asymmetry favors the issuer unless investors have a strong, range-bound bullish view.

TL;DR Payments hinge on Barclays� senior unsecured credit; bail-in language makes these notes effectively loss-absorbing instruments.

Although Barclays remains investment-grade (A/A-/A1), its senior debt trades with CDS spreads near 85 bps. Investors accept equivalent credit exposure in addition to market risk. The explicit consent to U.K. bail-in power elevates statutory loss-absorption risk versus comparable U.S. bank notes. Should Barclays enter resolution, principal can be written down or converted to equity with no event of default. Given the two-year tenor, default probability is low but non-zero; the incremental spread versus risk-free Treasuries (~120 bps all-in) provides limited compensation when adjusted for the embedded option value paid by investors. I classify the credit component as neutral to slightly negative for risk-averse buyers.

Barclays Bank PLC sta promuovendo un nuovo titolo strutturato biennale—Capped Buffer GEARS—collegato alla performance del prezzo dell'indice S&P 500®. Ogni titolo da 10$ offre una partecipazione con leva 2.0× su qualsiasi rendimento positivo dell'indice, ma i guadagni sono limitati tra il 21,65% e il 23,65% (tasso esatto fissato il 15 luglio 2025, data di negoziazione). Gli investitori ricevono:

  • Rimborso integrale del capitale alla scadenza se l'indice rimane stabile o scende meno del 10% (Buffer).
  • Esposizione alla perdita dell'1% per ogni 1% di calo oltre il 10% di Buffer, fino a una perdita massima del 90% del capitale.

I termini indicativi principali includono una soglia di ribasso al 90% del livello iniziale dell'indice, una leva al rialzo di 2.0, nessuna cedola periodica e scadenza il 20 luglio 2027. I titoli vengono emessi a valore nominale (10$), ma i modelli interni di Barclays stimano un valore equo tra 9,459$ e 9,959$, riflettendo commissioni di vendita incorporate, costi di copertura e margine dell’emittente. UBS Financial Services agisce come agente di collocamento per conti di consulenza a tariffa; non sono previste commissioni di vendita.

Considerazioni sul rischio sono al centro dell’informativa: i titoli sono obbligazioni non garantite e non subordinate di Barclays, soggette ai poteri di bail-in del Regno Unito, al rischio di mercato dell’S&P 500, a liquidità limitata (nessuna quotazione in borsa e mercato secondario discrezionale), incertezza fiscale (possibile trattamento come contratto prepaid forward) e rischio di valutazione (i prezzi secondari probabilmente inferiori al prezzo di emissione).

Scenari di rendimento illustrativi mostrano che un guadagno del 30% dell’indice produce un pagamento massimo di 12,165$, mentre un calo del 60% si traduce in soli 5,00$—dimostrando il rialzo limitato e il ribasso mitigato ma significativo.

Barclays Bank PLC está lanzando una nueva nota estructurada a dos años—Capped Buffer GEARS—vinculada al desempeño del precio del índice S&P 500®. Cada valor de 10$ ofrece una participación apalancada de 2.0× en cualquier rendimiento positivo del índice, pero las ganancias están limitadas entre el 21,65% y el 23,65% (tasa exacta establecida el 15 de julio de 2025, fecha de negociación). Los inversores reciben:

  • Reembolso total del principal al vencimiento si el índice se mantiene estable o cae menos del 10% (Buffer).
  • Exposición a pérdidas del 1% por cada 1% de caída más allá del 10% de Buffer, hasta una pérdida máxima del 90% del capital.

Los términos indicativos clave incluyen un umbral de caída al 90% del nivel inicial del índice, apalancamiento al alza de 2.0, sin cupones periódicos y vencimiento el 20 de julio de 2027. Las notas se emiten a la par (10$), pero los modelos internos de Barclays estiman un valor justo entre 9,459$ y 9,959$, reflejando concesiones de venta incorporadas, costos de cobertura y beneficio del emisor. UBS Financial Services actúa como agente colocador para cuentas de asesoría con tarifa; no se pagan comisiones de venta.

Consideraciones de riesgo dominan la divulgación: las notas son obligaciones no garantizadas y no subordinadas de Barclays, sujetas a poderes de rescate en el Reino Unido, riesgo de mercado del S&P 500, liquidez limitada (sin cotización en bolsa y mercado secundario discrecional), incertidumbre fiscal (posible tratamiento como contrato prepaid forward) y riesgo de valoración (precios secundarios probablemente por debajo del precio de emisión).

Escenarios ilustrativos de pago muestran que una ganancia del 30% en el índice produce el pago máximo de 12,165$, mientras que una caída del 60% resulta en solo 5,00$—demostrando el límite en la ganancia y la protección amortiguada pero significativa en la pérdida.

바클레이� 은� PLC� S&P 500® 지수의 가� 성과� 연동� 새로� 2� 만기 구조� 상품� Capped Buffer GEARS� 출시하고 있습니다. 각각 10달러 증권은 지수의 긍정� 수익� 대� 2.0� 레버리지 참여� 제공하지�, 수익은 21.65%에서 23.65% 사이� 제한됩니�(정확� 비율은 2025� 7� 15� 거래일에 확정). 투자자는 다음� 받습니다:

  • 지수가 변� 없거� 10% 미만 하락 � 만기 � 원금 전액 상환(버퍼).
  • 10% 버퍼� 초과하는 하락� 대� 1% 손실 노출, 최대 원금� 90% 손실까지.

주요 지� 조건으로� 초기 지� 수준� 90%� 해당하는 하락 한계, 2.0� 상승 레버리지, 정기 쿠폰 없음, 2027� 7� 20� 만기가 포함됩니�. � 노트� 액면가(10달러)� 발행되지�, 바클레이� 내부 모델은 판매 수수�, 헤지 비용 � 발행� 이익� 반영하여 공정 가치를 9.459달러에서 9.959달러 사이� 추정합니�. UBS 금융 서비스는 수수� 기반 자문 계좌� 위한 배치 에이전트 역할� 하며 판매 수수료는 지급되지 않습니다.

위험 고려 사항� 공개� 핵심입니�: � 노트� 바클레이즈의 무담� 비후순위 채무이며, 영국� 베일� 권한, S&P 500 시장 위험, 제한� 유동�(거래� 상장 없음 � 임의� 2� 시장 조성), 세금 불확실성(선불 선도 계약 처리 가능성), 평가 위험(2� 가격이 발행가 이하� 가능성)� 노출됩니�.

예시 수익 시나리오� 따르� 지수가 30% 상승하면 최대 12.165달러� 지급하�, 60% 하락 시에� 5.00달러� 지급되� 제한� 상승� 완충되었지� 상당� 하락 위험� 보여줍니�.

Barclays Bank PLC commercialise une nouvelle note structurée de deux ans—Capped Buffer GEARS—liée à la performance du prix de l’indice S&P 500®. Chaque titre de 10$ offre une participation avec un effet de levier de 2,0× sur tout rendement positif de l’indice, mais les gains sont plafonnés entre 21,65 % et 23,65 % (taux exact fixé le 15 juillet 2025, date de négociation). Les investisseurs bénéficient :

  • Du remboursement intégral du capital à l’échéance si l’indice est stable ou en baisse de moins de 10 % (Buffer).
  • D’une exposition à la perte de 1 % pour chaque baisse de 1 % au-delà du Buffer de 10 %, jusqu’� une perte maximale de 90 % du capital.

Les principaux termes indicatifs incluent un seuil de baisse à 90 % du niveau initial de l’indice, un effet de levier à la hausse de 2,0, aucune coupon périodique, et une échéance au 20 juillet 2027. Les notes sont émises à leur valeur nominale (10$), mais les modèles internes de Barclays estiment une juste valeur comprise entre 9,459$ et 9,959$, reflétant les commissions de vente intégrées, les coûts de couverture et la marge de l’émetteur. UBS Financial Services agit en tant qu’agent de placement pour les comptes de conseil facturés ; aucune commission de vente n’est versée.

Les considérations de risque dominent la divulgation : les notes sont des obligations non garanties et non subordonnées de Barclays, soumises aux pouvoirs de renflouement du Royaume-Uni, au risque de marché du S&P 500, à une liquidité limitée (pas de cotation en bourse et marché secondaire discrétionnaire), à une incertitude fiscale (traitement possible en tant que contrat prepaid forward) et au risque d’évaluation (les prix secondaires seront probablement inférieurs au prix d’émission).

Des scénarios de rendement illustratifs montrent qu’un gain de 30 % de l’indice génère un paiement maximal de 12,165$, tandis qu’une baisse de 60 % ne donne lieu qu’� 5,00$—démontrant le plafond des gains et la protection amortie mais significative contre les pertes.

Barclays Bank PLC bietet eine neue zweijährige strukturierte Note an—Capped Buffer GEARS—die an die Kursentwicklung des S&P 500® Index gekoppelt ist. Jede 10$-Anleihe bietet eine 2,0-fache Hebelwirkung auf positive Indexrenditen, jedoch sind die Gewinne auf 21,65-23,65% begrenzt (genauer Satz wird am 15. Juli 2025, dem Handelstag, festgelegt). Anleger erhalten:

  • Volle Rückzahlung des Kapitals bei Fälligkeit, wenn der Index unverändert bleibt oder weniger als 10% fällt (Buffer).
  • Verlustaussetzung von 1% für jeden 1% Rückgang über den 10% Buffer hinaus, bis zu maximal 90% Kapitalverlust.

Wichtige indikative Bedingungen umfassen eine Abwärtsschwelle bei 90% des Anfangsindexniveaus, einen Aufwärtshebel von 2,0, keine periodischen Kupons und eine Fälligkeit am 20. Juli 2027. Die Notes werden zum Nennwert (10$) ausgegeben, doch interne Modelle von Barclays schätzen den fairen Wert zwischen 9,459$ und 9,959$, was eingebettete Verkaufsprovisionen, Absicherungskosten und Emittentenmarge widerspiegelt. UBS Financial Services fungiert als Platzierungsagent für gebührenbasierte Beratungskonten; es werden keine Verkaufsprovisionen gezahlt.

Risikohinweise prägen die Offenlegung: Die Notes sind unbesicherte, nicht nachrangige Verbindlichkeiten von Barclays und unterliegen den Bail-in-Maßnahmen des Vereinigten Königreichs, dem Marktrisiko des S&P 500, eingeschränkter Liquidität (keine Börsennotierung und diskretionärer Sekundärmarkt), steuerlicher Unsicherheit (mögliche Behandlung als Prepaid-Forward-Kontrakt) und Bewertungsrisiko (Sekundärpreise wahrscheinlich unter dem Ausgabepreis).

Beispielhafte Auszahlungs-Szenarien zeigen, dass ein 30%iger Indexanstieg die maximale Zahlung von 12,165$ ergibt, während ein 60%iger Rückgang nur 5,00$ zur Folge hat—was die begrenzte Aufwärtschance und den gepufferten, aber erheblichen Abwärtsrisiko verdeutlicht.

 

Filed Pursuant to Rule 433

Registration No. 333-288424

Issuer Free Writing Prospectus, dated July 1, 2025

 

PRICING TERM SHEET

July 1, 2025

 

AeroVironment, Inc.

Offerings of

$875,000,048 of Shares of Common Stock (3,528,226 Shares)

$650,000,000 0% Convertible Senior Notes due 2030

 

The information in this pricing term sheet supplements (i) AeroVironment, Inc.’s (“AeroVironment”) preliminary prospectus supplement, dated June 30, 2025 (the “Common Stock Preliminary Prospectus Supplement”), relating to an offering of common stock (the “Common Stock Offering”), and (ii) AeroVironment’s preliminary prospectus supplement, dated June 30, 2025 (the “Convertible Notes Preliminary Prospectus Supplement”), relating to an offering of convertible senior notes (the “Convertible Notes Offering”), and, in each case, the accompanying prospectus, dated June 30, 2025, each filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”). This pricing term sheet supersedes the information in the Common Stock Preliminary Prospectus Supplement and the Convertible Notes Preliminary Prospectus Supplement to the extent inconsistent with the information in the Common Stock Preliminary Prospectus Supplement and Convertible Notes Preliminary Prospectus Supplement, respectively. Terms used, but not defined, in this pricing term sheet have the respective meanings set forth in the Common Stock Preliminary Prospectus Supplement and the Convertible Notes Preliminary Prospectus Supplement. As used in this pricing term sheet, “we,” “our” and “us” refer to AeroVironment and not to its subsidiaries. AeroVironment has increased the size of the Common Stock Offering from $750,000,000 to $875,000,048 (or, if the underwriters of the Common Stock Offering fully exercise their option to purchase additional shares of Common Stock, $1,006,250,080). In addition, AeroVironment has increased the size of the Convertible Notes Offering from $600,000,000 to $650,000,000 (or, if the underwriters of the Convertible Notes Offering fully exercise their over-allotment option to purchase additional Notes, $747,500,000). The final prospectus supplements relating to the Common Stock Offering and the Convertible Notes Offering will reflect conforming changes relating to such increase in the size of the Common Stock Offering and the Convertible Notes Offering, respectively.

 

Common Stock Offering

 

Issuer: AeroVironment, Inc.
   
Securities: 3,528,226 shares of common stock, par value $0.0001 per share, of AeroVironment, Inc. (the “Common Stock”) (or, if the underwriters of the Common Stock Offering fully exercise their option to purchase additional shares, 4,057,460 shares of Common Stock)
   
Offering Size: $875,000,048 (or, if the underwriters of the Common Stock Offering fully exercise their option to purchase additional shares of Common Stock, $1,006,250,080)
   
Ticker/Exchange for the Common Stock: AVAV / Nasdaq Global Select Market
   
Last Reported Sale Price per Share of the Common Stock on July 1, 2025: $252.40
   
Public Offering Price per Share of Common Stock: $248.00
   
Underwriting Discount: $9.30 per share of Common Stock, and $32,812,501.80 in the aggregate (or $37,734,378 in the aggregate, if the underwriters of the Common Stock Offering fully exercise their option to purchase additional shares of Common Stock)

 

 

 

 

Trade Date: July 2, 2025
   
Settlement Date: T + 1; July 3, 2025
   
Use of Proceeds: We estimate that the net proceeds to us from the Common Stock Offering will be approximately $840.9 million (or approximately $967.2 million if the underwriters of the Common Stock Offering fully exercise their option to purchase additional shares of Common Stock), after deducting the underwriters’ discounts and commissions and our estimated offering expenses. We intend to use the net proceeds from the Common Stock Offering, together with the net proceeds from the Convertible Notes Offering, to repay $700.2 million of indebtedness under the New Term Loan and $265.1 million of outstanding borrowings under the Revolving Credit Facility, and the remainder for general corporate purposes, including to increase manufacturing capacity.
   
Lead Book-Running Managers: J.P. Morgan Securities LLC
  BofA Securities, Inc.
   
Joint Book-Running Managers: Raymond James & Associates, Inc.
  RBC Capital Markets, LLC
  William Blair & Company, L.L.C.
  Robert W. Baird & Co. Incorporated
  BNP Paribas Securities Corp.
   
Co-Managers: BTIG, LLC
  Citizens JMP Securities, LLC
  BMO Capital Markets Corp.
   
CUSIP/ISIN Numbers for the Common Stock: CUSIP: 008073108 / ISIN: US0080731088

 

Convertible Notes Offering

 

Issuer: AeroVironment, Inc.
   
Securities: 0% Convertible Senior Notes due 2030 (the “Notes”)
   
Offering Size: $650,000,000 aggregate principal amount of Notes, plus up to an additional $97,500,000 aggregate principal amount of Notes pursuant to the over-allotment option of the underwriters of the Convertible Notes Offering
   
Ticker/Exchange for the Common Stock: AVAV / Nasdaq Global Select Market

 

 

 

 

Maturity Date: July 15, 2030
   
Coupon: 0% per annum
   
Issue Price: 100% of principal amount per Note
   
Underwriting Discount: 2.75% of the principal amount of the Notes, and $17,875,000 in the aggregate (or $20,556,250 in the aggregate, if the underwriters of the Convertible Notes Offering fully exercise their over-allotment option)
   
No Regular Interest; Special Interest

The Notes will not bear regular interest, and the principal amount of the Notes will not accrete. Special interest will accrue on the Notes in the circumstances described in the Convertible Notes Preliminary Prospectus Supplement under the caption “Description of Notes—Events of Default—Special Interest as Sole Remedy for Certain Reporting Defaults.”

 

If any special interest accrues on the Notes, then such interest will be payable semi-annually in arrears on the next January 15 or July 15 to noteholders of record as of the close of business on the immediately preceding January 1 and July 1, respectively.
   
Trade Date: July 2, 2025
   
Settlement Date: T + 1; July 3, 2025
   
Use of Proceeds: We estimate that the net proceeds to us from the Convertible Notes Offering will be approximately $630.8 million (or approximately $725.6 million if the underwriters of the Convertible Notes Offering fully exercise their over-allotment option), after deducting the underwriters’ discounts and commissions and our estimated offering expenses. We intend to use the net proceeds from the Convertible Notes Offering, together with the net proceeds from the Common Stock Offering, to repay $700.2 million of indebtedness under the New Term Loan and $265.1 million of outstanding borrowings under the Revolving Credit Facility, and the remainder for general corporate purposes, including to increase manufacturing capacity.
   
CUSIP / ISIN: CUSIP: 008073 AA6 / ISIN: US008073AA60
   
Denominations/Multiple: $1,000 / $1,000
   
Last Reported Sale Price per Share of the Common Stock on July 1, 2025: $252.40
   
Initial Conversion Rate: 3.1017 shares of Common Stock per $1,000 principal amount of Notes
   
Initial Conversion Price: Approximately $322.40 per share of Common Stock
   
Conversion Premium: Approximately 30.0% above the Public Offering Price per Share of Common Stock in the Common Stock Offering
   
Lead Book-Running Managers: J.P. Morgan Securities LLC
  BofA Securities, Inc.

 

 

 

 

Joint Book-Running Managers: Raymond James & Associates, Inc.
  RBC Capital Markets, LLC
  William Blair & Company, L.L.C.
  Robert W. Baird & Co. Incorporated
  BNP Paribas Securities Corp.
   
Co-Managers: U.S. Bancorp Investments, Inc.
  Citizens JMP Securities, LLC
  BMO Capital Markets Corp.
   
Optional Redemption: We may not redeem the Notes at our option at any time before July 21, 2028. Subject to the terms of the indenture, the Notes will be redeemable, in whole or in part (subject to certain limitations described below), at our option at any time, and from time to time, on or after July 21, 2028 and on or before the 61st scheduled trading day immediately before the Maturity Date, at a cash redemption price equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of Common Stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (ii) the trading day immediately before the date we send such notice. However, we may not redeem less than all of the outstanding Notes unless at least $100.0 million aggregate principal amount of Notes are outstanding and not called for redemption as of the time we send the related redemption notice. In addition, calling any Note for redemption will constitute a make-whole fundamental change with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption. If we elect to redeem less than all of the outstanding Notes, then the redemption will not constitute a make-whole fundamental change with respect to the Notes not called for redemption, and holders of the Notes not called for redemption will not be entitled to an increased conversion rate for such Notes as described above on account of the redemption, except in certain circumstances. See “Description of Notes—Optional Redemption” in the Convertible Notes Preliminary Prospectus Supplement.
   
Increase in Conversion Rate in Connection with a Make-Whole Fundamental Change: If a make-whole fundamental change occurs and the conversion date for the conversion of a Note occurs during the related make-whole fundamental change conversion period, then, subject to the provisions described in the Convertible Notes Preliminary Prospectus Supplement under the caption “Description of Notes—Conversion Rights—Increase in Conversion Rate in Connection with a Make-Whole Fundamental Change,” the conversion rate applicable to such conversion will be increased by a number of shares of Common Stock (the “Additional Shares”) set forth in the table below corresponding (after interpolation as described below) to the make-whole fundamental change effective date and the stock price of such make-whole fundamental change:

 

 

 

 

 

 

   Stock Price 
Make-Whole
Fundamental
Change
Effective
Date
  $248.00   $275.00   $300.00   $322.40   $360.00   $390.00   $419.12   $500.00   $600.00   $700.00   $850.00   $1,000.00   $1,200.00 
July 3, 2025    0.9305    0.7443    0.6113    0.5159    0.3925    0.3183    0.2612    0.1540    0.0816    0.0428    0.0146    0.0034    0.0000 
July 15, 2026    0.9305    0.7443    0.6113    0.5159    0.3888    0.3111    0.2520    0.1430    0.0719    0.0355    0.0105    0.0017    0.0000 
July 15, 2027    0.9305    0.7443    0.6072    0.4996    0.3639    0.2846    0.2254    0.1196    0.0548    0.0239    0.0051    0.0002    0.0000 
July 15, 2028    0.9305    0.7339    0.5697    0.4559    0.3161    0.2372    0.1801    0.0844    0.0321    0.0107    0.0008    0.0000    0.0000 
July 15, 2029    0.9305    0.6699    0.4870    0.3652    0.2249    0.1525    0.1046    0.0358    0.0080    0.0008    0.0000    0.0000    0.0000 
July 15, 2030    0.9305    0.5346    0.2316    0.0000    0.0000    0.0000    0.0000    0.0000    0.0000    0.0000    0.0000    0.0000    0.0000 

 

If such make-whole fundamental change effective date or stock price is not set forth in the table above, then:

 

·if such stock price is between two stock prices in the table above or the make-whole fundamental change effective date is between two dates in the table above, then the number of Additional Shares will be determined by straight-line interpolation between the numbers of Additional Shares set forth for the higher and lower stock prices in the table above or the earlier and later dates in the table above, based on a 365- or 366-day year, as applicable; and

 

·if the stock price is greater than $1,200.00 (subject to adjustment in the same manner as the stock prices set forth in the column headings of the table above are adjusted, as described in the Convertible Notes Preliminary Prospectus Supplement under the caption “Description of Notes—Conversion Rights—Increase in Conversion Rate in Connection with a Make-Whole Fundamental Change—Adjustment of Stock Prices and Number of Additional Shares”), or less than $248.00 (subject to adjustment in the same manner), per share of Common Stock, then no Additional Shares will be added to the conversion rate.

 

Notwithstanding anything to the contrary, in no event will the conversion rate be increased to an amount that exceeds 4.0322 shares of Common Stock per $1,000 principal amount of Notes, which amount is subject to adjustment in the same manner as, and at the same time and for the same events for which, the conversion rate is required to be adjusted pursuant to the provisions described in the Convertible Notes Preliminary Prospectus Supplement under the caption “Description of Notes—Conversion Rights—Conversion Rate Adjustments—Generally.”

 

We have filed a registration statement (including a prospectus), the Common Stock Preliminary Prospectus Supplement and the Convertible Notes Preliminary Prospectus Supplement with the SEC for the offerings to which this communication relates. Before you invest, you should read the Common Stock Preliminary Prospectus Supplement or the Convertible Notes Preliminary Prospectus Supplement, as applicable, and the prospectus in that registration statement and other documents we have filed with the SEC for more complete information about us and these offerings. You may get these documents free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, we, any underwriter or any dealer participating in the applicable offering will arrange to send you the Common Stock Preliminary Prospectus Supplement or the Convertible Notes Preliminary Prospectus Supplement, as applicable (or, when available, the applicable final prospectus supplement) and the accompanying prospectus upon request to: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at [email protected] and [email protected]; or BofA Securities, Attn: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, email: [email protected], telephone: 1-800-294-1322.

 

 

 

 

The information in this pricing term sheet is not a complete description of the Common Stock, the Common Stock Offering, the Notes or the Convertible Notes Offering. You should rely only on the information contained or incorporated by reference in the Common Stock Preliminary Prospectus Supplement and the Convertible Notes Preliminary Prospectus Supplement and the accompanying prospectus, as supplemented by this pricing term sheet, in making an investment decision with respect to the Common Stock or the Notes.

 

ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.

 

 

FAQ

What is the Upside Gearing on Barclays' Capped Buffer GEARS?

The notes offer 2.0× leveraged exposure to any positive S&P 500 return, subject to the Maximum Gain.

How much principal protection do investors have in these securities?

There is a 10% Buffer; full principal is returned only if the index decline does not exceed 10% at maturity.

What is the Maximum Gain investors can earn?

The cap will be set on the Trade Date between 21.65% and 23.65%, corresponding to a maximum payment of $12.165-$12.365 per $10 note.

When do the Barclays Capped Buffer GEARS mature?

The notes are scheduled to mature on July 20, 2027, approximately two years after the July 15, 2025 Trade Date.

Are the securities listed on an exchange?

No. The notes will not be listed; liquidity depends on Barclays Capital Inc. making a secondary market, which it is not obligated to do.

Why is the estimated value lower than the $10 issue price?

The $9.459-$9.959 estimate reflects hedging costs, structuring fees and issuer profit; investors pay a premium over model value at issuance.
Aerovironment

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10.71B
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99.73%
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Aerospace & Defense
Aircraft
United States
ARLINGTON