NEW YORK (TheStreet) -- Energy Transfer Equity (ETE) stock is declining 6.93% to $6.98 in early-afternoon trading on Thursday after the company conducted a private offering of convertible shares to some investors to help pay for its acquisition of Williams Cos. (WMB).

Energy Transfer Equity shareholders holding more than 329 million units chose to receive convertible units in exchange for waiving certain distributions for as many as nine quarters, according to a filing, Reuters reports.

One such shareholder was Energy Transfer Equity CEO Kelcy Warren.

The total value of the proposed cash-and-stock deal has declined to roughly half of the original $33 billion merger announced in September, as plunging oil prices have weighed on the companies, Reuters adds.

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Energy Transfer Equity's strengths such as its impressive record of earnings per share growth and compelling growth in net income are countered by weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

You can view the full analysis from the report here: ETE

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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