The KEYW Holding Corp. (NASDAQ: KEYW) said it has closed an additional USD19.5m principal amount of its convertible senior notes due July 15, 2019 to cover over-allotments in connection with its public offering launched on July 15, 2014, for a total offering size of USD149.5m.
RBC Capital Markets and BofA Merrill Lynch acted as joint book-running managers for the notes offering. SunTrust Robinson Humphrey acted as co-manager. In connection with the exercise of the over-allotment option, the company entered into privately negotiated capped call transactions with affiliates of RBC Capital Markets and BofA Merrill Lynch.
The net proceeds from the exercise of the over-allotment option were approximately USD18.7m after deducting the underwriters´ discounts, estimated fees and expenses. The company used approximately USD2.4m to fund the cost of the additional capped call transactions. The company plans to use the net proceeds for working capital, capital expenditures and other general corporate purposes, including potential acquisitions.
KEYW provides agile cyber superiority, cybersecurity, and geospatial intelligence solutions for US government intelligence and defense customers and commercial enterprises. Its website is at keywcorp.com.