The Capital Markets team advised the joint lead book-running managers and underwriting syndicate in the completion of VSE Corporation’s (Nasdaq: VSEC) upsized underwritten public offerings of (i) 4,587,766 shares of its common stock (inclusive of the full exercise of the underwriters’ option to purchase 598,404 additional shares) at a public offering price of $188.00 per share, for aggregate proceeds of $863 million; and (ii) 9,200,000 of its 5.750% tangible equity units (inclusive of the full exercise of the underwriters’ option to purchase 1,200,000 additional units), with an aggregate stated amount of $460 million. The gross proceeds from the offerings, before deducting underwriting discounts and commissions and estimated offering expenses, were approximately $1.32 billion. VSE intends to use the net proceeds from the offerings to fund a portion of the purchase price of its approximately $2.025 billion acquisition of Precision Aviation Group, Inc., a portfolio company of GenNx360 Capital Partners.
VSE is a leading provider of aviation distribution and repair services for the commercial and business and general aviation (“B&GA”) aftermarkets. Headquartered in Miramar, Florida, VSE is focused on significantly enhancing the productivity and longevity of its customers’ high-value, business-critical assets. VSE’s aftermarket parts distribution and maintenance, repair, and overhaul services support engine component and engine and airframe accessory part distribution and repair services for commercial and B&GA operators.
The Goodwin team was led by Ben Marsh, Justin Platt, Jim Barri, Kim de Glossop and Jesse Fishman and included Justin Pierce, Dan Karelitz, Maggie Wong, Griffin Drake, Madison Clausius, Haylee Brown, Caleb Paasche and Ysabelle Regis. This transaction marks the fifth offering by VSE since 2023 for which Goodwin has represented the underwriters, during which time the Company’s market capitalization has grown from approximately $650 million to approximately $4.4 billion.
For additional details on the offering, please read the press release.