Kratos Defense & Security Solutions Prices 14.3M Shares At $84 To Raise $1.17B
Kratos Defense & Security Solutions priced an underwritten offering of 14,285,714 common shares at $84.00 each, generating approximately $1.173 billion in net proceeds. Proceeds will fund capex for defense and security programs, R&D of new systems, balance-sheet strengthening, Nomad acquisition, pending Orbit deal and future strategic M&A.
1. Offering Details
Kratos Defense & Security Solutions announced an underwritten offering of 14,285,714 common shares priced at $84.00 per share, raising approximately $1.173 billion in net proceeds. Underwriters have a 30-day option to purchase up to 2,142,857 additional shares.
2. Use of Proceeds
The company plans to deploy funds for capital expenditures to scale operations and meet demand from defense and national security customers, invest in R&D for new products and systems, strengthen its balance sheet to pursue contract awards, and finance the recent Nomad acquisition, pending Orbit deal and future strategic M&A opportunities.
3. Expected Closing and Managers
The offering is expected to close on March 2, 2026, pending customary closing conditions. Robert W. Baird, Raymond James, RBC Capital Markets and Truist Securities are acting as joint book-running managers for the transaction.