Shareholder Oak Investment invests $55 million; B. Riley is bookrunner
By Devika Patel
Knoxville, Tenn., May 9 - Kratos Defense & Security Solutions, Inc. said it priced a $100 million public sale of stock with a $15 million greenshoe. The deal was announced Tuesday.
The company will sell 20 million common shares at $5.00 apiece. The price per share is a 4.82% premium to the May 8 closing share price of $4.77.
Existing shareholder Oak Investment Partners has said it plans to invest $55 million.
B. Riley & Co., LLC is the sole bookrunning manager.
Settlement is expected May 14.
Proceeds will fund the cash component of the company's planned acquisition of Composite Engineering, Inc. and will also be used for general corporate purposes.
Kratos is a San Diego-based provider of engineering, manufacturing and system integration for national security platforms and programs.
| Issuer: | Kratos Defense & Security Solutions, Inc.
|
| Issue: | Common shares
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Shares: | 20 million
|
| Price: | $5.00
|
| Warrants: | No
|
| Bookrunner: | B. Riley & Co., LLC
|
| Investor: | Oak Investment Partners (for $55 million)
|
| Announcement date: | May 8
|
| Pricing date: | May 9
|
| Settlement date: | May 14
|
| Stock symbol: | Nasdaq: KTOS
|
| Stock price: | $4.77 at close May 8
|
| Market capitalization: | $163.86 million
|
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