Kratos Defense & Security Solutions, Inc. Prices Public Offering of Common Stock

SAN DIEGO, June 18, 2020 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (“Kratos”) (Nasdaq: KTOS), a leading National Security Solutions provider, today announced the pricing of an underwritten offering of 13,500,000 shares of its common stock at a public offering price of $16.25 per share pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”).  The net proceeds to Kratos from the offering, after deducting underwriting discounts and commissions, are expected to be approximately $209.0 million. Kratos has also granted the underwriters a 30-day option to purchase up to an additional 2,025,000 shares of common stock.  All of the shares in the offering are to be sold by Kratos.  The offering is expected to close on June 23, 2020, subject to customary closing conditions.

Kratos expects to use the net proceeds from this offering for general corporate purposes, including for potential strategic “tuck-in” acquisitions, to further position the Company for projected growth from new and anticipated increased production and to facilitate its long-term strategy.

Goldman Sachs & Co. LLC is acting as sole book-running manager for the offering.  Baird and Canaccord Genuity are acting as senior co-managers for the offering.  SunTrust Robinson Humphrey, Benchmark Company, B.Riley FBR, Noble Capital Markets and Academy Securities are acting as co-managers for the offering.

The securities described above are being offered pursuant to an automatic shelf registration statement on Form S-3ASR (File No. 333-220339) that was previously filed by Kratos with the SEC and automatically became effective upon filing on September 5, 2017.  This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.

A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been filed with the SEC and a final prospectus supplement will be filed with the SEC. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained, when available, from Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, by telephone at [phone], or by email at [e-mail]. Electronic copies of the final prospectus supplement and accompanying prospectus will also be available on the SEC’s website at www.sec.gov.