Kratos Defense & Security Solutions Inc. announced on Sept. 22 that it accepted $175 million worth of bonds for repurchase.

Kratos (Nasdaq: KTOS) announced plans in late August to buy back a portion of its 7 percent senior secured notes due 2019.

Kratos will pay total consideration for the tendered notes at par, plus accrued and unpaid interest to the date on which the tendered notes are paid.

The business recently sold the U.S. and U.K. operations of its Electronic Products Division for $260 million, and is using proceeds to pay off debt.

Bondholders tendered some $618.6 million worth of notes, the San Diego company reported.

Kratos shares lost 2.6 percent on Sept. 22 to close at $4.10. The Nasdaq closed down 1.5 percent on the same day while the Standard & Poor’s 500 lost 1.2 percent of its value.