VSE Corporation Announces Public Offerings of Common Stock and Tangible Equity Units

Key Terms

prepaid stock purchase contract financial

A prepaid stock purchase contract is an agreement where an investor pays cash up front in exchange for the right to receive a company’s shares at a later date or upon certain conditions. For investors it matters because it provides immediate funding to the company while creating a future claim on equity that can dilute existing shareholders and affect share supply and price; think of it like paying a deposit now for stocks delivered later, often with pricing or timing rules attached.

senior amortizing note financial

A senior amortizing note is a loan-like security that must be paid back before other creditors and returns both interest and portions of the original loan (principal) regularly over its life. Think of it like a mortgage for a company: investors receive scheduled payments that include part of the principal and interest, which lowers the outstanding balance over time and gives a clearer, steadier repayment outlook. Its priority in payment reduces risk compared with lower-ranked debt, while the regular principal paydown affects long-term yield and liquidity.

underwritten public offerings financial

An underwritten public offering is when a company sells new shares to the public with investment banks agreeing to buy any unsold shares, guaranteeing the company will receive the promised cash. Think of it like a store manager who promises to buy any leftover inventory so the seller gets paid upfront; this provides certainty of funding but can dilute existing shareholders and affect the stock price, so investors watch size, purpose, and terms closely.

Nasdaq Global Select Market financial

A Nasdaq Global Select Market listing is the highest tier of stocks on the Nasdaq exchange, reserved for companies that meet the strictest financial, reporting and governance standards. For investors, it acts like a premium quality label—signaling larger, more transparent and better-governed companies that tend to offer greater liquidity and lower perceived risk compared with lower-tier listings, making it easier to buy, sell and evaluate shares.

prospectus supplements regulatory

A prospectus supplement is an official add-on to a securities prospectus that provides new or updated details about a specific stock, bond, or other offering, such as terms, risks, or financial data. Investors use it like a product label update—checking it tells them what exactly is being offered, any changes from the original plan, and whether the investment's risks, size, or price have shifted, which can affect buy, hold, or sell decisions.

registration statement regulatory

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

senior obligations financial

Senior obligations are debts or payment commitments that have legal priority over other claims, meaning they get paid before other creditors if a company runs into trouble or liquidates. Think of them as people at the front of the payment line; because they are higher priority, they are generally less risky for investors and often carry lower interest rates, so knowing a company’s mix of senior and junior obligations helps assess default risk and potential recovery in distress.

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MIRAMAR, Fla.--(BUSINESS WIRE)-- VSE Corporation (“VSE” or the “Company”) (NASDAQ: VSEC), a leading provider of aviation aftermarket distribution and repair services, announced today that it has commenced concurrent underwritten public offerings, subject to market and other conditions, of $650 million of its common stock and tangible equity units (the “Units”) with an aggregate stated amount of $350 million, pursuant to an effective shelf registration statement. In addition, VSE intends to grant the underwriters in each of the offerings a 30-day option to purchase up to an additional 15% of the shares of common stock or Units offered in the public offerings, as applicable.

VSE intends to use the net proceeds from the offerings to fund a portion of the purchase price of its previously announced acquisition of Precision Aviation Group, Inc., a portfolio company of GenNx360 Capital Partners (the “PAG Acquisition”).

Each Unit will be comprised of a prepaid stock purchase contract and a senior amortizing note due February 1, 2029, in each case issued by VSE. Unless earlier settled at the holder’s option or at VSE’s option or earlier redeemed by VSE in connection with a merger termination redemption, each stock purchase contract will automatically settle on February 1, 2029 (subject to postponement in certain limited circumstances) for shares of VSE's common stock. The amortizing notes will pay equal quarterly cash installments that will constitute a payment of interest and a partial repayment of principal. The amortizing notes will have a final installment payment date of February 1, 2029 and will be unsecured senior obligations of VSE.

VSE’s common stock is listed on The Nasdaq Global Select Market under the symbol “VSEC” and VSE has applied to list the Units on The Nasdaq Global Select Market under the symbol “VSECU.”

The common stock offering and the Units offering are separate public offerings made by means of separate prospectus supplements. The completion of the Units offering is not contingent on the completion of the common stock offering, and the completion of the common stock offering is not contingent on the completion of the Units offering. Neither offering is contingent on the consummation of the PAG Acquisition or any debt financing. If the PAG Acquisition is not consummated, VSE intends to use the net proceeds from the offerings for general corporate purposes, which may include redeeming and repurchasing the purchase contract and amortizing note components of the Units in connection with a merger termination redemption.

Jefferies and RBC Capital Markets are acting as joint lead book-running managers and representatives of the underwriters for the offerings.

An automatically effective shelf registration statement relating to the securities being offered has been filed with the Securities and Exchange Commission (the “SEC”). The offerings are being made only by means of preliminary prospectus supplements and accompanying prospectuses. Preliminary prospectus supplements and accompanying prospectuses relating to the offerings will be filed with the SEC and will be available free of charge on the SEC’s website at http://www.sec.gov. Copies of the preliminary prospectus supplements and accompanying prospectuses relating to the offerings may also be obtained from Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at (877) 821-7388 or by email at Prospectus_Department@Jefferies.com, or from RBC Capital Markets, LLC, Attn: Equity Capital Markets, 200 Vesey Street, 8^th floor, New York, New York 10281, by telephone at 877-822-4089 or by email at equityprospectus@rbccm.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities described herein, nor shall there be any sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction.

ABOUT VSE CORPORATION

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.

FORWARD-LOOKING STATEMENTS

This press release contains statements that, to the extent they are not recitations of historical fact, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such statements are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and this statement is included for purposes of such safe harbor provisions.

“Forward-looking” statements, as such term is defined by the SEC in its rules, regulations and releases, represent VSE’s expectations or beliefs, including, but not limited to, statements concerning the Company’s expectations regarding the offering of common stock and the offering of Units, including the expected timing, terms, size and use of proceeds of each offering, VSE’s expectation that VSE will complete the proposed offerings, VSE’s operations, economic performance, financial condition, growth and acquisition strategies, investments and future operational plans. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “forecast,” “seek,” “plan,” “predict,” “project,” “could,” “estimate,” “might,” “continue,” “seeking” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements.

These statements speak only as of the date of this press release and VSE undertakes no ongoing obligation, other than that imposed by law, to update these statements. These statements relate to, among other things, VSE’s intent, belief or current expectations with respect to the timing and terms of the anticipated offerings, the grant of the options to purchase additional shares and Units, as applicable, the anticipated use of proceeds from the offerings and other statements relating to the proposed offerings. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, certain of which are beyond VSE’s control, and that actual results may differ materially from those contained in or implied by the forward-looking statements as a result of various factors, some of which are unknown, including, without limitation, risks related to:

• the performance of the aviation aftermarket;

• global economic and political conditions;

• supply chain delays and disruptions;

• competition from existing and new competitors;

• losses related to investments in inventory and facilities;

• interruptions in VSE’s operations;

• challenges related to workforce management or any failure to attract or retain a skilled workforce;

• VSE’s ability to consummate the PAG Acquisition within the time frame VSE expects, if at all;

• VSE’s ability to realize the expected strategic benefits and cost synergies from the PAG Acquisition, after taking into account any business disruption, maintenance of customer, employee, or supplier relationships, management distraction during the integration process or other factors beyond VSE’s control;

• the accuracy of VSE’s assumptions relating to the PAG Acquisition;

• the significant expenses that have been incurred and will be incurred in connection with the PAG Acquisition, whether or not the PAG Acquisition is completed;

• VSE’s ability to finance the PAG Acquisition on acceptable terms, or at all;

• VSE’s ability to consummate, successfully integrate, and achieve the strategic and other objectives, including any expected synergies, relating to recently completed acquisitions, including the acquisition of Aero 3, Inc.;

• access to and the performance of third-party package delivery companies;

• prolonged periods of inflation and VSE’s ability to mitigate the impact thereof;

• future business conditions resulting in impairments;

• VSE’s ability to successfully divest businesses and to transition facilities in connection therewith;

• VSE’s work on large government programs;

• health epidemics, pandemics and similar outbreaks;

• compliance with government rules and regulations, including tariffs and environmental and pollution risk;

• VSE’s ability to mitigate the impacts of increased costs related to tariffs;

• litigation and legal actions arising from VSE’s operations;

• technology and cybersecurity threats and incidents;

• VSE’s outstanding indebtedness, including the expected increase in indebtedness upon completion of the PAG Acquisition;

• market volatility in the debt and equity capital markets;

• VSE’s ability to continue to pay dividends at current levels or at all;

• VSE’s published financial guidance;

• VSE’s preliminary financial estimates, which represent management’s current estimates and are subject to change;

• dilution to VSE’s stockholders related to any financing transactions, including these offerings;

• restrictions and limitations that may stem from financing arrangements we enter into or assume in the future, or from the redemptions and repurchases we may undertake if the PAG Acquisition is not consummated;

• VSE’s expected use of proceeds from these offerings, particularly the broad discretion of VSE’s management to use the net proceeds from the common stock offering if the PAG Acquisition is not consummated; and

• the other factors identified in VSE’s reports filed or expected to be filed with the SEC, including VSE’s Annual Report on Form 10-K for the year ended December 31, 2024 and VSE’s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2025, June 30, 2025, and September 30, 2025.

You are advised, however, to consult any further disclosures VSE makes on related subjects in VSE’s periodic reports on Forms 10-K, 10-Q or 8-K filed with or furnished to the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260201083549/en/

INVESTOR RELATIONS CONTACT:
Michael Perlman
Vice President of Investor Relations and Treasury
Phone: (954) 547-0480
Email: investors@vsecorp.com

Source: VSE Corporation