Aviation firm VSE steadies after upsized acquisition-related raise

Royal Bank of Canada

03/02/2026 12:26

** Aviation services firm VSE Corp VSEC.O shares up marginally at $191.05 before the bell after above-target raise for acquisition

** Miramar, Florida-based VSEC early Tues says it sold ~4 mln shares at $188 for $750 mln and 8 mln of 5.75% 3-yr mandatory convertible tangible equity units (TEUs) for $400 mln

** VSEC shares on Mon closed down ~13% at $190.93 after co commenced public offerings of $650 mln in stock and $350 mln TEUs

** Co intends to use net proceeds from the offerings to partially fund $2 bln acquisition of Precision Aviation Group from private equity firm GenNx360 Capital Partners

** Threshold price on TEUs set at $230.31, 22.5% above the offering price of the equity offering

** Jefferies and RBC are joint lead bookrunners for the offerings

** Through Mon, VSEC shares up nearly 90% over the past 12 months. Stock hit record intraday high of $225 on Fri

** All 9 analysts are bullish on the stock; median PT of $231.50 up from $208 a month ago, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))