Exelis‘ (NYSE: XLS) board of directors has approved the spinoff of the company’s mission systems business division into a separate, publicly traded company that will operate as Vectrus.The companies have set Sept. 27 as the date to complete the transaction and Vectrus will begin regular way trading on the New York Stock Exchange Sept. 29 under the symbol “VEC, “ Exelis said Monday.
Exelis shareholders of record on Sept. 27 will receive one share of Vectrus common stock for every 18 shares of Exelis common stock.
Exelis said it has approximately 188 million shares of common stock outstanding and nearly 10 million shares of Vectrus common stock will go to Exelis shareholders.
Vectrus will incur nearly $140 million of debt financing upon completion of the spinoff and Exelis will use the proceeds to fund a nearly $120 million cash distribution to an Exelis subsidiary.
The remaining amount will be paid through a working capital adjustment when the transaction finishes, Exelis said.
Computershare Trust Company N.A. will serve as the distribution agent, transfer agent and registrar for Vectrus common stock.
