Kratos Announces Commencement of an Offer to Redeem All Outstanding 6.5% Senior Secured Notes Due November 2025
11 February 2022 - 8:00AM
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 electronics, missile defense,
hypersonic systems, training and combat systems and next generation
turbo jet and turbo fan engine development. For more information go
to www.kratosdefense.com.
Notice
Regarding
Forward-Looking
StatementsAll
statements in this press release are made as of February 10, 2022.
Except as required by applicable law, Kratos undertakes no
obligation to publicly update or revise these statements, whether
as a result of new information, future events or otherwise. This
press release may contain “forward-looking statements” within the
meaning of federal securities laws, including statements related to
the expected timing, final terms and completion of the Redemption
Offer and the proposed refinancing transaction, the expected
reduction in annual interest expense to be realized by the Company
as a result of the Redemption Offer and the proposed refinancing
transaction and similar statements concerning anticipated future
events and expectations that are not historical facts. Kratos
cautions you that these statements are not guarantees of future
performance and are subject to numerous evolving risks and
uncertainties that Kratos may not currently be able to accurately
predict or assess, including the risk that Kratos is unable to
redeem all of the Senior Secured Notes in the Redemption Offer or
otherwise consummate the proposed refinancing transaction on the
anticipated terms, within the anticipated timeline or at all, risks
associated with fluctuations in the financial markets and other
risks and uncertainties that are described in further detail in
Kratos’ reports filed with the Securities and Exchange Commission,
including Kratos’ Quarterly Report on Form 10-Q for the fiscal
quarter ended September 26, 2021. There can be no assurance that
the Redemption Offer and proposed refinancing transaction will be
completed, or that the expected annual savings of interest expense
will be realized as described herein or at all. Any of these
factors could cause actual results to differ materially from
expectations Kratos expresses or implies in this press release.
Press Contact:Yolanda White858-812-7302
Direct
Investor
Information:877-934-4687investor@kratosdefense.com
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