Kratos Defense & Security Solutions Prices Offering Of 16.67 Mln Shares At $18.00/shr

(RTTNews) - Kratos Defense & Security Solutions Inc. (KTOS) said that it has priced its underwritten offering of 16.67 million shares of its common stock at a public offering price of $18.00 per share.

KTOS closed Thursday's regular trading at $18.78 down $1.40 or 6.94%. In the after-hours trading the stock further dropped $0.23 or 1.22%.

The company expects net proceeds from the offering, after deducting underwriting discounts and commissions, to be about $288 million.

Kratos has also granted the underwriters a 30-day option to purchase up to an additional 2.50 million shares of common stock. All of the shares in the offering are to be sold by Kratos. The offering is expected to close on February 27, 2024.

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.