Kratos Announces $625 Million 7% Senior Secured Notes Offering
SAN DIEGO, May 9, 2014 (GLOBE NEWSWIRE) -- Kratos Defense & Security
Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider,
announced today that it priced an offering of $625 million in aggregate
principal amount of 7.0% senior secured notes due 2019.
Kratos will pay interest on the notes semi-annually on May 15 and November 15
of each year, commencing on November 15, 2014. The notes will mature on May
15, 2019.The notes will be guaranteed on a senior basis by each of Kratos'
existing and future domestic restricted subsidiaries.The issue price of the
notes is 98.966%.Kratos intends to use the net cash proceeds from this
offering to refinance its existing 10% senior secured notes due 2017 and to
pay all fees and expenses related thereto.The offering is expected to close
on or about May 14, 2014, subject to customary closing conditions.
The notes are being offered inside the United States to qualified
institutional buyers in reliance on Rule 144A under the Securities Act of
1933, as amended (the "Securities Act"), and outside the United States to
non-U.S. persons in reliance on Regulation S under the Securities Act.
The notes have not been registered under the Securities Act or applicable
state securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state laws. This press
release is neither an offer to sell nor a solicitation of an offer to buy the
notes or any other securities and shall not constitute an offer to sell or a
solicitation of an offer to buy, or a sale of, the notes or any other
securities in any jurisdiction in which such offer, solicitation or sale is
unlawful.This press release does not constitute a notice of redemption under
the redemption provisions of the indenture governing our existing senior
secured notes.This press release is being issued pursuant to and in
accordance with Rule 135c under the Securities Act.
About Kratos Defense& Security Solutions
Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a specialized
National Security technology Company providing mission critical products,
solutions and services for United States National Security. Kratos' core
capabilities are sophisticated engineering, manufacturing and system
integration offerings for National Security platforms and programs. Kratos'
areas of expertise include Command, Control, Communications, Computing, Combat
Systems, Intelligence, Surveillance and Reconnaissance (C5ISR), satellite
communication systems, electronic warfare, unmanned systems, missile defense,
cyber warfare, cybersecurity, information assurance, and critical
infrastructure security. Kratos has primarily an engineering and technically
oriented work force of approximately 3,700. Substantially all of Kratos' work
is performed on a military base, in a secure facility or at a critical
infrastructure location. Kratos' primary end customers are National Security
related agencies. News and information are available at www.KratosDefense.com.
Notice Regarding Forward-Looking Statements
This press release contains certain forward-looking statements that involve
risks and uncertainties, including, without limitation, Kratos' ability to
complete the announced offering of senior secured notes and Kratos' intentions
regarding the use of the net proceeds from the offering.Such statements are
only predictions, and Kratos' actual results may differ materially as a result
of various factors. Some of such risks, uncertainties and other factors are
described in our Form 10-K for the period ended December 29, 2013 and in other
documents we file with the Securities and Exchange Commission from time to
time.Investors are cautioned not to place undue reliance on any such
forward-looking statements. All such forward-looking statements speak only as
of the date they are made, and Kratos undertakes no obligation to update or
revise these statements, whether as a result of new information, future events
CONTACT: Press Contact:
Press spacebar to pause and continue. Press esc to stop.