NEW YORK (TheStreet) -- Seaspan (SSW) - Get Report stock is down by 10.37% to $14.52 on heavy trading volume Tuesday morning, after the company priced its public offering of 5 million Class A common shares at $14.70 per share.
Seaspan has granted the underwriters a 30-day option to purchase up to 750,000 additional common shares.
The offering is expected to close on May 27.
The company will use about $85 million of the proceeds to redeem a portion of its outstanding 9.5% Series C Cumulative Redeemable Perpetual Preferred Shares. It will use the remainder for "general corporate purposes."
Based in Hong Kong, Seaspan is an independent charter owner and manager of containerships.
About 1.34 million shares of Seaspan have been traded so far today, well above the company's average trading volume of roughly 279,536 shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Seaspan's strengths such as its revenue growth, good cash flow from operations and expanding profit margins are countered by weaknesses including unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: SSW
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.