Kratos Defense & Security Solutions, Inc. has announced its intention to offer for sale $500,000,000 of shares of its common stock in an underwritten offering. The underwriters will have a 30-day option to purchase up to an additional $75,000,000 of shares of common stock from Kratos. All of the shares in the offering are to be sold by Kratos.
The net proceeds of the offering are intended to be used to fund investments and capital expenditures to scale and successfully execute on large, mission-critical national security priorities related to existing programs, recent program awards, and significant high-probability pipeline opportunities. Additionally, the proceeds will be used to finance important customer and program targeted acquisitions, and for general corporate purposes, including pay-down of debt and to pay fees and expenses in connection with 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.
Baird, RBC Capital Markets, Truist Securities, and Raymond James are acting as joint book-running managers for the offering.
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system, and software company addressing the defense, national security, and commercial markets. The company makes true internally funded research, development, capital, and other investments to rapidly develop, produce, and field solutions that address its customers' mission-critical needs and requirements. Kratos aims to utilize proven, leading-edge approaches and technology, with a focus on reducing cost, schedule, and risk to be first to market with cost-effective solutions.
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 drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products, and virtual & augmented reality training systems for the warfighter. Following these announcements, the company's shares moved 10.91%, and are now trading at a price of $45.84. Check out the company's full 8-K submission here.
