Kratos Defense & Security Solutions has resurrected the bond refinancing that it scrapped back in November 2013 due to market conditions.
The US satcoms systems developer is raising US$626m through a new senior secured note offering. The 7% notes, due…
Kratos Defense & Security Solutions has resurrected the bond refinancing that it scrapped back in November 2013 due to market conditions.
The US satcoms systems developer is raising US$626m through a new senior secured note offering. The 7% notes, due May 2019, priced at 98.966 to yield 7.07%.
The offering is expected to close on or about 14 May 2014,
As with the planned November financing, proceeds are to be used to repurchase the US$625m outstanding of 10% senior secured notes due 2017.
The notes have a ‘no call’ provision that expires at the end of this month.
Kratos recently announced that ratings agency Standard & Poor’s revised the company’s outlook to stable from negative and affirmed its “B” rating.
S&P noted that the increased clarity regarding the US defence budget had lessened the potential for disruption in demand and volatility in Kratos’ core business.
The company has also sought to “right size” and restructure this business in response to the DoD’s changed budgetary environment.
In its recent Q1 results Kratos affirmed its previous full year fiscal 2014 financial guidance of US$920m -US$980m in revenues, US$93m – US$106m in adjusted EBITDA and free cash flow of US$25m to US$40m.
