NEW YORK (TheStreet) -- Shares of Calumet Specialty Products Partners  (CLMT) - Get Report are plunging, sharply lower by 9.84% to $25.10 on heavy volume in late morning trading Tuesday, after the refiner and oil services company announced it would sell 6 million common units at $26.75 per share to raise funds for capital spending and general corporate purposes.

Calumet said it will use the net proceeds to repay borrowings outstanding under its revolving credit facility. The company also said some funds will be used for general partnership purposes, such as capital expenditures, working capital, and potentially the repurchase of outstanding notes.

The offering is expected to close on March 13, subject to customary closing conditions.

WTI crude for April delivery was trading down 1.1% to $49.45 as of 11:30 a.m. ET, while Brent crude is similarly down 2.44% to $57.10 a barrel, after briefly touching $57 a barrel at 9:29 a.m. ET earlier today.

Indianapolis, IN-based Calumet Specialty Products Partners is a producer of specialty hydrocarbon products in North America operating under specialty products and fuel products segments.

In its specialty products segment, the company processes crude oil and other feedstocks into a range of customized lubricating oils, white mineral oils, solvents, petrolatums and waxes.

In its fuel products segment, Calumet processes crude oil into a range of fuel and fuel-related products, including gasoline, diesel, jet fuel, asphalt and heavy fuel oils.

Separately, TheStreet Ratings team rates CALUMET SPECIALTY PRODS -LP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate CALUMET SPECIALTY PRODS -LP (CLMT) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth came in higher than the industry average of 19.8%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
• Net operating cash flow has significantly increased by 336.37% to $168.30 million when compared to the same quarter last year. In addition, CALUMET SPECIALTY PRODS -LP has also vastly surpassed the industry average cash flow growth rate of -11.94%.
• Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
• The debt-to-equity ratio is very high at 2.11 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, CLMT has a quick ratio of 0.66, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
• Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CALUMET SPECIALTY PRODS -LP's return on equity significantly trails that of both the industry average and the S&P 500.
• You can view the full analysis from the report here: CLMT Ratings Report