Kratos Defense and Security Solutions Inc (KTOS)

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***Kratos Defense & Security Solutions, Inc. Prices Offering of Common Stock

10:55 pm ET September 7, 2017 (Globe Newswire) Print
Kratos Defense & Security Solutions, Inc. ("Kratos") (Nasdaq:KTOS), announced today the pricing of an underwritten offering of 14,000,000 shares of its common stock at a public offering price of $12.25 per share. The net proceeds to Kratos from the offering, after deducting underwriting discounts and commissions, are expected to be approximately $162,067,500. Kratos has also granted the underwriters a 30-day option to purchase up to an additional 2,100,000 shares of common stock. All of the shares in the offering are to be sold by Kratos. The offering is expected to close on September 12, 2017, subject to customary closing conditions.

Kratos expects to use the net proceeds from the offering to position itself for projected growth from new and anticipated increased production on under contract programs and expected to be received new programs and contracts, to reduce its indebtedness in order to reduce the Company's cost of capital and facilitate its long-term strategy, and for general corporate purposes, including potential acquisitions.

J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are acting as joint book-running managers for the offering. B. Riley & Co., Canaccord Genuity, Drexel Hamilton, Noble Capital Markets and Seaport Global Securities are acting as co-managers for the offering.

A shelf registration statement relating to the shares of common stock to be issued in the offering was filed with the Securities and Exchange Commission ("SEC") and is effective. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.

A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been filed with the SEC and a final prospectus supplement will be filed with the SEC. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained, when available, from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at [phone]; or from Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, by telephone at [phone], by facsimile at [phone] or by email at [e-mail]. Electronic copies of the final prospectus supplement and accompanying prospectus will also be available on the SEC's website at www.sec.gov.