Movers and SHAKERS
Wednesday, June 24, 2020
Kratos Defense & Security (KTOS)
Announces $250 million Stock Offering
Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Stock Offering. Last week, Kratos announced a public offering of 13.5 million shares at $16.25/sh, raising $219.4 million, or $209 million, net to Kratos after underwriting costs and fees. Underwriters have the option to purchase up to an additional 2.025 million shares, which would increase the amount raised to Kratos to $240 million. Assuming the underwriter exercise in full, the additional 15.5 million shares equate to a 14% increase in the outstanding shares. All shares proposed to be sold are being sold by the Company.
Uses. According to the prospectus, the proceeds will be used for "general corporate purposes, including for potential strategic 'tuck-in' acquisitions, to further position us for projected growth from new and anticipated increased production and to facilitate our long-term strategy." The funds will easily cover the $35 million cost of the acquisition of ASC Signal announced...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.