Kratos DefenseInc. (NASDAQ:KTOS) Files An 8-K Other EventsItem 8.01 Other Events.
In connection with Kratos Defense & Security Solution, Inc.’s (the “Company”) recently closed $75,037,500 public offering (the “Offering”), the underwriters have exercised in full their over-allotment option to purchase 1,552,500 shares of common stock at a public offering price of $7.25 per share (the “Over-allotment Option”).
The exercise of the Over-allotment Option brings the total shares of common stock sold by the Company in the Offering to 11,902,500 shares. The Company expects to receive gross proceeds from the Offering, before commissions and expenses, of $86,293,125.
On March 1, 2017, the Company’s board of directors approved an increase to the Company’s note repurchase program which authorizes the Company to repurchase up to $100,000,000 of its 7% Senior Secured Notes due in 2019 (the “Notes”) over a two-year period, subject to compliance with applicable law and existing covenant restrictions under the Company’s Credit and Security Agreement, dated May 14, 2014, as amended. The Company expects to fund repurchases under the note repurchase program with cash and cash equivalents on hand. Under the program, management is authorized to purchase Notes from time to time through open market purchases or privately negotiated transactions, including by making a tender offer to the holders of the Notes, and to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, subject to market conditions and other factors.