Kratos to get $145 million debt financing for Integral purchase

By Sara Rosenberg

New York, May 16 - Kratos Defense & Security Solutions Inc. plans on getting $145 million of senior debt and/or senior notes to help fund its acquisition of Integral Systems Inc., company officials said in a conference call on Monday.

Jefferies and KeyBank are the lead banks on the financing.

"We expect to fund the cash component of approximately $140 million, which includes estimated acquisition expenses, and the payoff of Integral's debt utilizing a combination of our cash on hand, which today is approximately $80 million in additional indebtedness," officials added in the call.

Under the agreement, Kratos will acquire each issued and outstanding share of Integral Systems common stock for $5.00 per share in cash and 0.588 shares of Kratos common stock.

Kratos is a San Diego-based specialized national security technology business. Integral Systems is a Columbia, Md.-based developer and provider of satellite system command and control software, signal monitoring, telemetry, interference identification and military range processing products.

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