DynCorp International, a leading provider of outsourced civilian police and military support services to the US Department of State and DoD, priced 25 million shares at $15 a share, which was the low end of its proposed $15-$17 range. The company expects to use the net proceeds from the offering primarily to redeem insider preferred stock and pay out a one-time dividend to its current shareholders. Defense-focused private equity firm Veritas Capital will retain an estimated 56% ownership stake in the company. Credit Suisse and Goldman Sachs acted as joint book-running managers on the deal. The stock is expected to begin trading Thursday morning on the NYSE under the symbol "DCP".
According to its most recent SEC filing, DynCorp expects to generate operating cash flow of $145-$151 million on total revenues of $1.941 to $1.971 billion in its fiscal year ended March 31, 2006. DynCorp has seen its business expand materially over the last few years as a result of increased demand for outsourced civilian police in places such as Iraq and Afghanistan, as well as added aircraft base support services related to the US war effort.
