NEW YORK (TheStreet) -- Southwestern Energy (SWN) - Get Report  stock is plummeting 6.41% to $13 this morning after the company offered 75 million new shares of its common stock to the public.

The Spring, TX-based energy company plans on using the proceeds to repay $375 million of a $750 million debt.

The debt, which the company entered into in the fall of 2015, is from a term loan funded by lenders including Bank of America.

Southwestern has also allowed underwriters of the common offering, including Credit Suisse, to purchase up to 11.25 million additional shares.

As 392.7 million shares of the company are currently outstanding, the offering represents an increase of 19% in shares.

Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D. 

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

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

Recently, 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 articles's author.

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