The Firm recently represented the underwriters, led by Robert W. Baird & Co. Incorporated, in connection with the public offering of 19,166,667 shares of common stock (including 2,500,000 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares) of Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS). The gross proceeds from the offering were approximately $331.2 million. Kratos intends to use the net proceeds from the offering to facilitate its long-term strategy, including potential investment in facilities, expanding manufacturing capacity, anticipated capital expenditures for expansion of current sole-source/single award programs and high probability pipeline opportunities, further strengthen its balance sheet in anticipation of upcoming customer and partner decisions and source selection on additional large, new program and contract opportunities, for general corporate purposes, including paydown of debt, and to pay fees and expenses in connection with the offering.
Kratos is a government contractor at the forefront of the U.S. Department of Defense’s recapitalization of strategic weapon systems to address peer and near peer threats and its related Rapid Innovation Initiatives. Kratos is a leading technology, intellectual property and proprietary product and system company focused on the U.S. and its allies’ national security.
The Simpson Thacher team for the transaction included David Azarkh, Patrick Baron, David Turitzin and Hannah Levinson (Capital Markets); Jonathan Cantor and Kris Liu (Tax); Pasco Struhs (Executive Compensation and Employee Benefits); Lori Lesser and Rachelle Broida (Intellectual Property); Noreen Lavan (Environmental); and Jennie Getsin (FINRA).