New Issue-Kratos Defense sells $225 mln in notes

May 12 (Reuters) - Kratos Defense & Security Solutions Inc (KTOS.O) on Wednesday sold $225 million of senior secured notes in the 144a private placement market, said a market source.

The size of the deal was increased from an originally planned $200 million.

Jefferies was the sole bookrunning manager for the sale.
BORROWER: KRATOS DEFENSE & SECURITY SOLUTIONS INC
AMT $225 MLN COUPON 10.0 PCT MATURITY 6/1/2017
TYPE SR NOTES ISS PRICE 100 FIRST PAY 12/1/2010
MOODY'S B3 YIELD 10.0 PCT SETTLEMENT 5/19/2010
S&P B-PLUS SPREAD 642 BPS PAY FREQ SEMI-ANNUAL
FITCH N/A MORE THAN TREAS NON-CALLABLE 4 YRS*
*MAKE-WHOLE-CALL 50 BPS