The Firm recently represented the underwriters, led by J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC, in connection with the public offering of 16,100,000 shares of common stock (including 2,100,000 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 $186 million. Kratos intends 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 its cost of capital and facilitate its long-term strategy, and for general corporate purposes, including potential acquisitions.
Kratos is a mid-size government contractor at the forefront of the U.S. Department of Defense’s Third Offset Strategy. Kratos is a leading technology, intellectual property and proprietary product and solutions company focused on the U.S. and its allies’ national security.
The Simpson Thacher team for the transaction included Art Robinson, David Azarkh, Matthew Levy, Jonathan Zane and Ashley Yoon (Capital Markets); Jonathan Cantor and Christopher Murray (Tax); Larry Moss and Eric Wolf (Executive Compensation and Employee Benefits); Lori Lesser and Lawrence Huang (Intellectual Property); Timothy Mulvihill (Environmental); and Jennie Getsin (FINRA). Summer Associate Matthew Drucker also provided valuable assistance.