Defense contractor Kratos to sell 26 million common shares to institutional investors

Kratos to sell 26M shares to institutional holders

SAN DIEGO — Kratos Defense & Security Solutions Inc. said Friday it will sell 26 million common shares directly to institutional investors for 72 cents per share.

Kratos expects to net about $17.6 million from the share sale, after fees and other expenses. The shares sold will be part of a 1-for-10 reverse-stock split set for Sept. 10.

The defense contractor plans to use the money primarily to pay down debt. Any extra will be used for general corporate expenses and acquisitions.

The sale is expected to close on Wednesday. B. Riley & Co. is the placement agent for the deal.

Kratos shares fell 4 cents, or 4.6 percent, to 79 cents in midday trading.