BUZZ-Contractor Amentum falls after launch of secondary offering

Reuters2025-03-11
BUZZ-Contractor Amentum falls after launch of secondary offering

** Shares of engineering consultant Amentum AMTM.N fall as much as 7.3%; last down 4.9% at $19.02 after secondary offering news

** Contractor Jacobs Solutions' unit J.N will exchange ~19.5 million shares of AMTM for debt held by Bank of America BAC.N

** Following debt-for-equity exchange, BofA Securities will sell the shares to the underwriters in the offering

** BofA Securities, J.P. Morgan, Morgan Stanley, BNP Paribas and TD Cowen are the joint book-running managers for the offering

** Post offering, Jacobs will no longer have a stake in AMTM, other than the ~9.7 million shares in escrow pending release in connection with post-closing adjustments tied to last year's merger of Jacobs' government consulting businesses with Amentum

** Jacobs gained 7.5% stake in AMTM following the merger

** AMTM stock closed up 9.1% at $19.99 on March 7

** Stock down 9.7% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))

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