Simpson Thacher represented the initial purchasers, led by Goldman Sachs & Co. LLC, in connection with a Rule 144A/Regulation S offering by Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) of $300 million aggregate principal amount of 6.5% Senior Secured Notes due 2025. The transaction closed on November 20, 2017.
KTOS used the net proceeds from the notes offering, together with cash on hand, to retire all of its outstanding existing 7% Senior Secured Notes due 2019 and to pay related fees and expenses.
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, Jeffrey Wittman and Lily Picón (Capital Markets); Soogy Lee and Jonathan Pall (Collateral); Timothy Gallagher (Real Estate); 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).