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Kratos Proposes to Sell Up to $345M of Shares of Common Stock in Public Offering; Baird’s Jean Stack Quoted

Kratos Defense and Security Solutions (Nasdaq: KTOS) is kicking off a proposed underwritten public offering of $300 million of shares of its common stock and expects to grant the underwriters a 30-day option to buy up to an additional $45 million of shares of its common stock.

The proposed public ofering is subject to market and other conditions, Kratos said in a Feb. 21 news release.

The San Diego-based defense contractor intends to use the net proceeds from its proposed offering to strengthen its balance sheet as it anticipates source selection on new programs and contract opportunities, support general corporate purposes and advance its long-term strategy, which includes the expansion of manufacturing capacity and investment in facilities.

Jean Stack, managing director at Baird and a 2024 Wash100 awardee, said in a LinkedIn post Monday that Baird Global Investment Banking has served as the lead bookrunner on Kratos’ proposed $345 million follow-on offering.

Stack noted that the transaction demonstrates Baird’s continued commitment to the defense technology sector.

Apart from Baird, RBC Capital Markets and Truist Securities act as bookrunning managers. B. Riley Securities and Raymond James serve as passive bookrunners for the offering.

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