Kratos Defense announces $300M common stock offering

Kratos Defense & Security Solutions announced that it intends to offer for sale $300M of shares of its common stock in an underwritten offering pursuant to an effective shelf registration statement filed with the SEC. All of the shares in the offering are to be sold by Kratos. Kratos expects to use the net proceeds to facilitate its long-term strategy, including potential investment in facilities, expanding manufacturing capacity, anticipated capital expenditures for expansion of current sole-source/single award programs and high probability pipeline opportunities, further strengthen the company’s balance sheet in anticipation of upcoming customer and partner decisions and source selection on additional large, new program and contract opportunities, for general corporate purposes, including paydown of debt, and to pay fees and expenses in connection with the offering. Baird, RBC Capital Markets, and Truist Securities are acting as joint book-running managers for the offering. B. Riley Securities and Raymond James are acting as passive book-runners for the offering.