SAN DIEGO - Kratos Defense (NASDAQ:KTOS) & Security Solutions, Inc. (NASDAQ: KTOS), a company focused on technology for defense, national security, and global markets, announced today its plan to offer $300 million of its common stock in an underwritten public offering. The offering is based on an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC).
The underwriters of the offering have been granted a 30-day option to purchase up to an additional $45 million of common stock from Kratos. The company aims to utilize the net proceeds to support its long-term strategy, which includes investments in facilities, expansion of manufacturing capacity, capital expenditures for current programs, strengthening of its balance sheet, and for general corporate purposes such as debt paydown.
The joint book-running managers for this offering are Baird, RBC Capital Markets, and Truist Securities, with B. Riley Securities and Raymond James serving as passive book-runners. The securities are being offered by means of a prospectus supplement and the accompanying prospectus, which will be filed with the SEC.
Kratos is known for its internally funded research and development efforts and for providing cost-effective solutions in its industry. The company's primary business areas encompass a range of defense and security technologies, including satellite command and control systems, unmanned aerial drone systems, hypersonic vehicles, missile propulsion systems, and training systems for warfighters.
This press release by Kratos does not serve as an offer to sell the securities, nor a solicitation of an offer to buy. The sale of securities will only be conducted through a prospectus supplement and accompanying prospectus, which are obtainable from the listed managing firms. Electronic copies of these documents will also be available on the SEC's website.
The forward-looking statements included in the press release reflect the company's expectations for the stock offering and its intended use of proceeds, subject to market conditions and other factors. Kratos has made it clear that it does not intend to update these statements unless required by new information or future events.
This news article is based on a press release statement from Kratos Defense & Security Solutions.
InvestingPro Insights
As Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) announces its new public stock offering, potential investors are keenly observing the company's financial health and market performance. According to InvestingPro data, Kratos has a market capitalization of approximately $2.62 billion, and despite a notable P/E ratio of -209.85 for the last twelve months as of Q4 2023, the company's revenue growth during the same period was an impressive 15.45%. This growth is a testament to Kratos's expanding operations and its foothold in the defense and security technology sectors.
Moreover, analysts predict that Kratos will become profitable this year, aligning with the company's strategic investments and expansion plans. This anticipation of profitability is further supported by the company's strong performance over the past year, with a price total return of 80.94%. Additionally, the company's liquid assets surpass its short-term obligations, indicating a stable financial position to meet its immediate liabilities.
Those considering participating in the public offering might find these insights particularly relevant. With a InvestingPro subscription, users can access even more in-depth analysis and metrics, including additional InvestingPro Tips that provide a comprehensive understanding of Kratos's financial landscape. Currently, there are 11 more InvestingPro Tips listed for Kratos, which can be invaluable for making informed investment decisions. To delve deeper into these insights, prospective subscribers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As the next earnings date approaches on May 1, 2024, investors will be watching closely to see if the company's strategic initiatives and market performance align with the optimistic forecasts and whether the stock offering will bolster Kratos's long-term growth trajectory.
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