Kratos Defense and Security Solutions Inc. announced plans early Sept. 5 to issue 12.5 million additional shares of common stock.
The University City-based business said it plans to use the capital “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.” The business also said it wants to reduce indebtedness and use proceeds for general corporate purposes. Kratos indicated it might buy other companies.
Shares of Kratos (Nasdaq: KTOS) closed Sept. 5 at $13.81, some 3 percent higher on a day the market showed jitters over North Korea’s latest nuclear test.
J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are joint book-running managers for the offering, Kratos said. The two Wall Street firms will have a 30-day option to purchase up to an additional 1,875,000 shares of common stock from Kratos.