Kratos Defense Stops Proposed Refinancing Of $625 Mln Senior Notes Due June 2017

(RTTNews) - Kratos Defense & Security Solutions Inc. (KTOS), National Security Solutions provider, announced Monday that it has discontinued a proposed refinancing of its $625 million Senior Notes, due June 2017, as the total combined upfront refinancing cost and new recurring interest cost would not achieve the Company's objective for an opportunistic reduction of the net present value total cost of capital of the Company's existing Senior Notes, due June 2017, based on current market conditions.

Accordingly, the company said it will continue to evaluate the cost of a potential refinancing of its existing Senior Notes, weighing related market conditions and the opportunity to refinance its Notes at the most appropriate time.

Importantly, Standard and Poor's Ratings Services and Moody's Investor Service recently reaffirmed their respective credit ratings of B and B3 of the Company, noting that Kratos is fairly well positioned in relatively high-priority areas of the defense budget and that Kratos' product portfolio is positioned in areas where funding levels are less vulnerable, including unmanned aerial and missile systems, satellite communications, electronic warfare, radar and signals processing.