AeroVironment stock drops 7% on offering plan to pay off debt

Core Viewpoint - AeroVironment plans to raise $750 million in common stock and $600 million in convertible senior notes to repay debt, leading to a 7% drop in shares [1] Group 1: Financial Actions - The company intends to use the raised funds primarily for debt repayment and to enhance manufacturing capacity [1] - The convertible senior notes are due in 2030, indicating a long-term financing strategy [1] Group 2: Market Performance - Despite the recent drop, AeroVironment shares have increased by 85% this year, raising its market value to approximately $13 billion [1] - The stock experienced a rally following strong fourth-quarter results, with notable media attention labeling it as the "next Palantir of hardware" [2]