Kratos talks $675 million secured notes due 2020 to yield 7¼%-7½%; pricing Nov. 25 week

By Paul A. Harris

Portland, Ore., Nov. 22 - Kratos Defense & Security Solutions, Inc. talked $675 million offering of senior secured second-lien notes due 2020 (expected ratings B3/B) to yield 7¼% to 7½% on Friday, according to an informed source.

Books were scheduled to close on Friday afternoon.

Pricing is expected to take place during the Nov. 25 week.

Wells Fargo Securities LLC is the left bookrunner. SunTrust Robinson Humphrey Inc. is the joint bookrunner.

The Rule 144A and Regulation S with registration rights notes become callable after three years at par plus 75% of the coupon.

The San Diego-based high-tech defense contractor plans to use the proceeds to fund the repayment of some existing debt, including the repurchase of its 10% senior notes.

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