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Stock Offerings: Resource Capital

Stocks in this article: RSO

NEW YORK ( TheStreet) -- Resource Capital (RSO) shares fell hard as the company announced a follow-on offering of common stock.

Resource Capital said it intends to offer approximately $80 million of its common stock. Underwriters will have a 30-day option to purchase up to an additional 15% of the offered amount of common stock to cover overallotments, if any.

In its prospectus, Resource Capital said it expects net proceeds of approximately $75.2 million, or $86.5 million if the underwriter's overallotment option is exercised in full. Those proceeds will be used for general corporate purposes, including acquisition of investments, loan originations and working capital. Proceeds may also be used to repurchase a portion of the company's outstanding CDO notes.

The expected dilutive effect of the offering pressured shares of Resource Capital. The stock was down 58 cents, or 8.6%, to $6.14. Share volume of 363,000 was roughly half the three-month average daily share volume of 708,000.

Elsewhere, RegeneRx Biopharamaceuticals (RGN) priced its previously announced public offering of 11.5 millionn units at a public offering price of 41 cents per unit. Each unit being offered consists of one share of RegeneRx common stock and 0.40 warrants to purchase common stock at an exercise price of 56 cents per share.

RegeneRx has granted the underwriters a 45-day option to purchase up to an additional 1.72 million units to cover overallotments, if any. Net proceeds of approximately $3.9 million will be used to support and fund several clinical trials, the company said.

RegeneRx shares were tumbling nearly 30% to 36 cents.

Aegean Marine Petrol (ANW) shares were also trading lower after the refined marine fuel supplier filed for mixed securities shelf offering. The stock was down 5.3% to $25.39.

Meanwhile, Regal Entertainment Group (RGC) and IRSA Inversiones (IRS) were out with news on senior note offerings.

Regal Entertainment said it has postponed a proposed offering of $250 million of senior notes of Regal Cinemas as a result of unfavorable market conditions. On the other hand, IRSA Inversiones said it will offer up to $150 million senior notes, an amount that could be increased up to $250 million, the company said.

Net proceeds would be used for refinancing or repayment of outstanding indebtedness, capital contributions to subsidiaries or affiliates, investments in tangible assets in Argentina and funding of working capital, IRSA Inversiones said.

Regal Entertainment shares were fractionally higher at $16.21, and IRSA Inversiones climbed 0.9% to $12.21.

-- Written by Robert Holmes in Boston.

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