Kratos Defense & Security Solutions, Inc. has announced a proposed public offering of common stock amounting to $300,000,000, with an underwriter option to purchase an additional $45,000,000 of shares. The company intends to utilize the net proceeds for several purposes, including potential investment in facilities, expanding manufacturing capacity, and paying down debt. The offering is being managed by Baird, RBC Capital Markets, and Truist Securities as joint book-running managers, with B. Riley Securities and Raymond James as passive book-runners.
The offering is made pursuant to an automatic shelf registration statement on Form S-3ASR, which was filed with the SEC and became effective on February 21, 2024. This press release emphasizes that the offering will be subject to market and other conditions, with the company intending to use the net proceeds to facilitate its long-term strategy and strengthen its balance sheet.
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system, and software company focused on the defense, national security, and commercial markets. They emphasize internally funded research, development, and investments to rapidly develop and field solutions addressing customers' critical needs. The company plans to pursue program and contract opportunities as the prime or lead contractor when their probability of win (PWIN) is high and the required investment is within their capital resource comfort level. Their primary business areas include virtualized ground systems for satellites and space vehicles, jet-powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for various applications, and virtual & augmented reality training systems for the warfighter.
