VVX selling shareholder to sell 2,000,000 shares; V2X to repurchase 200,000
V2X (VVX) is offering 2,000,000 shares of its common stock for resale by a selling shareholder; the company will not receive proceeds from that sale.
The underwriter agreed to buy the shares from the selling shareholder at $50.00 per share, producing aggregate proceeds of $100,000,000 to the selling shareholder. V2X has agreed to buy 200,000 of those shares from the underwriter at the same price (a $10.0 million repurchase), funded with cash on hand and approved by a disinterested special committee; the repurchase is conditioned on closing of the offering and may be subject to a 1% excise tax.
Outstanding shares were 31,709,821 before the transaction and will be 31,509,821 after the offering and repurchase. After the sale the selling shareholder will hold 10,167,286 shares (~32.3%). The filing discloses that the company’s independent auditor, RSM US LLP, concluded the company had not maintained effective internal control over financial reporting as of December 31, 2024.
Positive
- Company repurchase of 200,000 shares at $50 per share (total $10.0 million) reduces shares outstanding and was approved by a disinterested special committee.
- $100.0 million aggregate proceeds to the selling shareholder via the underwriter purchase; underwriter committed to purchase all offered shares.
- Selling shareholder ownership decreases from 12,167,286 shares (38.3%) to 10,167,286 shares (32.3%), per the filing.
Negative
- Company will not receive proceeds from the 2,000,000-share sale; proceeds go to the selling shareholder.
- RSM US LLP concluded the company had not maintained effective internal control over financial reporting as of December 31, 2024.
- 2,000,000 shares offered for resale (approximately 6.3% of pre-offering outstanding shares) could increase the tradable float and create downward pressure on the stock.
- Share repurchase may be subject to a 1% excise tax under the Inflation Reduction Act of 2022, potentially increasing repurchase cost.
Insights
TL;DR: 2.0M-share secondary sale increases tradable supply; company repurchase is modest; auditor flagged material control weakness.
The filing describes a routine secondary offering: 2,000,000 shares sold by a selling shareholder at $50.00 per share, with the company repurchasing 200,000 shares for $10.0 million from the underwriter. The company will not receive proceeds from the sale. Outstanding shares fall by the repurchase only (from 31,709,821 to 31,509,821). Concentrated ownership remains: investment funds affiliated with American Industrial Partners will beneficially own ~32.3% post-transaction. The independent auditor’s finding that internal control over financial reporting was not effective is a material operational disclosure that warrants attention from investors and management.
TL;DR: Shareholders agreement and director changes limit selling shareholder rights; special committee approved repurchase; lock-up and indemnities noted.
The prospectus supplement states post-closing governance changes under a Shareholders Agreement: two directors designated by the selling shareholder must resign by the 2026 Annual Meeting and the selling shareholder loses certain consent rights over major corporate actions. The repurchase was approved by a disinterested special committee. Lock-up agreements restrict sales for 45 days. These items reflect negotiated governance transitions tied to the sale and are material to control and board composition.
(To Prospectus dated September 12, 2022)
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ABOUT THIS PROSPECTUS SUPPLEMENT
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PROSPECTUS SUPPLEMENT SUMMARY
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THE OFFERING
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RISK FACTORS
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
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USE OF PROCEEDS
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SELLING SHAREHOLDER
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U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF COMMON STOCK
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UNDERWRITING
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WHERE YOU CAN FIND MORE INFORMATION
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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
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LEGAL MATTERS
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EXPERTS
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Page
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ABOUT THIS PROSPECTUS
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PROSPECTUS SUMMARY
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RISK FACTORS
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FORWARD-LOOKING STATEMENT INFORMATION
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USE OF PROCEEDS
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SELLING SHAREHOLDERS
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PLAN OF DISTRIBUTION
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WHERE TO FIND ADDITIONAL INFORMATION
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INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
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LEGAL MATTERS
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Name of selling shareholder
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Shares beneficially
owned prior to this offering |
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Shares to be sold in
this offering |
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Shares beneficially
owned after this offering |
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Number
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Percent
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Number
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Percent
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Number
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Percent
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Vertex Aerospace Holdco LLC(1)
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| | | | 12,167,286 | | | | | | 38.3% | | | | | | 2,000,000 | | | | | | 6.3% | | | | | | 10,167,286 | | | | | | 32.3% | | |
COMMON STOCK
1875 Campus Commons Drive Suite 305
Reston, Virginia 20191
(719) 591-3600
Attention: Investor Relations ir@gov2x.com
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Page
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ABOUT THIS PROSPECTUS
|
| | | | i | | |
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PROSPECTUS SUMMARY
|
| | | | 1 | | |
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RISK FACTORS
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| | | | 2 | | |
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FORWARD-LOOKING STATEMENT INFORMATION
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| | | | 3 | | |
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USE OF PROCEEDS
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| | | | 5 | | |
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SELLING SHAREHOLDERS
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| | | | 6 | | |
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PLAN OF DISTRIBUTION
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| | | | 8 | | |
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WHERE TO FIND ADDITIONAL INFORMATION
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| | | | 10 | | |
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INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
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LEGAL MATTERS
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EXPERTS
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Prior to the Offering
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Number of
Shares of Common Stock Being Registered for Resale(2) |
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After the Offering
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Name of Selling Shareholder
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Number of
Shares of Common Stock Beneficially Owned |
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Percent of
Shares of Common Stock Outstanding(1) |
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Number of
Shares of Common Stock Beneficially Owned(3) |
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Percent of
Shares of Common Stock Outstanding |
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Vertex Aerospace Holdco LLC(4)
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| | | | 18,591,866 | | | | | | 61.07% | | | | | | 18,500,001 | | | | | | — | | | | | | * | | |
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Ally Commercial Finance LLC(5)
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| | | | 82,223 | | | | | | * | | | | | | 82,223 | | | | | | — | | | | | | * | | |
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Cecil B. Duren(6)
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| | | | 6,166 | | | | | | * | | | | | | 6,166 | | | | | | — | | | | | | * | | |
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Tom K. Miller(7)
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| | | | 1,696 | | | | | | * | | | | | | 1,696 | | | | | | — | | | | | | * | | |
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Dennis E. Mirabile(8)
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| | | | 1,780 | | | | | | * | | | | | | 1,780 | | | | | | — | | | | | | * | | |
2424 Garden of the Gods Road, Suite 300
Colorado Springs, Colorado 80919
(719) 591-3600
Attention: Investor Relations
https://investors.vectrus.com