VSE (VSEC) said Monday it has commenced separate underwritten public offerings of its common stock worth $650 million and tangible equity units worth $350 million.

Each tangible equity unit consists of a prepaid stock purchase contract and a senior amortizing note due Feb. 1, 2029, the company said.

The underwriters were granted a 30-day option to buy up to an additional 15% of the common shares or units on sale in the public offerings, according to VSE.

The distributor of aviation aftermarket parts and repair services said it intends use net proceeds from the offerings to partially finance its acquisition of Precision Aviation Group.

Shares of the company were down more than 4% in recent Monday premarket activity.