AeroVironment (NASDAQ:AVAV) stock declined 8% in after-hours trading Monday following the company’s announcement of proposed public offerings totaling $1.35 billion in common stock and convertible senior notes.

The defense technology company plans to offer $750 million of common stock and $600 million in convertible senior notes due 2030, according to a press release. AeroVironment also intends to grant underwriters a 30-day option to purchase up to an additional $112.5 million of common stock and $90 million in convertible notes to cover potential over-allotments.

The California-based drone manufacturer stated it plans to use the net proceeds to repay indebtedness under its term loan and outstanding borrowings under its revolving credit facility, with any remainder allocated for general corporate purposes, including increasing manufacturing capacity.

J.P. Morgan and BofA Securities are serving as lead book-running managers for both offerings, with Raymond (NSE:RYMD) James acting as a joint book-running manager for the convertible notes offering. The company noted that neither offering is conditioned upon the closing of the other, and both are subject to market conditions.

AeroVironment, which supplies unmanned aircraft systems to the U.S. military and allies, emphasized that there is no assurance regarding whether or when the offerings may be completed, or their actual size or terms.