Kratos Defense & Security Solutions, Inc. has announced a proposed public offering of common stock, aiming to offer $500,000,000 of shares with an additional option for underwriters to purchase up to $75,000,000 of shares. The company intends to utilize the net proceeds for various purposes, including funding investments, capital expenditures, customer and program targeted acquisitions, and general corporate purposes.
Baird, RBC Capital Markets, Truist Securities, and Raymond James are acting as joint book-running managers for the offering. The offering is being made pursuant to an automatic shelf registration statement on Form S-3ASR (file no. 333-277222) that was previously filed by Kratos with the SEC and automatically became effective upon filing on February 21, 2024.
Kratos' 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 electronic products for missile, radar, missile defense, space, satellite, and communication systems, among others.
The company's innovative and disruptive approach is geared towards reducing cost, schedule, and risk, enabling them to be first to market with cost-effective solutions. They intend to pursue program and contract opportunities as the prime or lead contractor when their probability of win (PWIN) is high and any investment required by Kratos is within their capital resource comfort level.
This public offering signifies a strategic move for Kratos Defense & Security Solutions, Inc. as it seeks to secure additional funding for its growth and expansion plans in the defense, national security, and commercial markets. The market has reacted to these announcements by moving the company's shares 10.91% to a price of $45.84. For more information, read the company's full 8-K submission here.
