Press release
Kratos Announces Commencement of an Offer to Redeem All Outstanding 6.5% Senior Secured Notes Due November 2025
Approximately $300 Million Outstanding on 6.5% NotesExpected to Be Replaced by New 5 Year Bank Credit Facility SAN DIEGO, Feb. 10, 2022 (GLOBE NEWSWIRE) --
About this update from Kratos Defense & Security Solutions, Inc.
[{"type":"text","content":"Approximately $300 Million Outstanding on 6.5% NotesExpected to Be Replaced by New 5 Year Bank Credit Facility SAN DIEGO, Feb. 10, 2022 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, today announced the commencement of an offer to redeem all of its outstanding $300 million 6.5% Senior Secured Notes due November 2025 on March 14, 2022 (the “Redemption Date”), subject to completion of the refinancing of its revolving credit facility, for an amount of cash equal to 103.25% of the principal amount thereof plus accrued and unpaid interest thereon to, but excluding, the Redemption Date (the “Redemption Offer”). The Company is currently in the process of refinancing its revolving credit facility and intends to replace 100% of the principal amount currently outstanding under its 6.5% Senior Secured Notes through this refinancing process. The Company expects that its refinancing activities will be completed prior to the Redemption Date. The Company will provide additional details related to the refinancing transaction once it has been completed. Deanna Lund, Kratos’ Executive Vice President and Chief Financial Officer, said, “The offer to redeem the $300 million 6.5% Senior Secured Notes and replace these borrowings with traditional bank financing, once successfully completed, is expected to save Kratos approximately $10 to $13 million in cash interest payments annually, based on current interest rates, while also positioning the Company to continue to maintain significant cash on its balance sheet to support expected future growth, including potential future large production opportunities in the Unmanned Systems business.” About Kratos Defense & Security SolutionsKratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave ...