NEW YORK (TheStreet) -- Shares of Teekay Offshore Partners (TOO) - Get Report are spiking by 20.55% to $5.49 on heavy trading volume Friday afternoon, after announcing a private placement of $200 million worth of equity securities.
The Bermuda-based marine transportation and oil production company has issued $100 million worth of perpetual preferred units and $100 million worth of common stock units to a group of investors. The transactions are expected to close by the end of June.
Teekay Offshore Partners will use the proceeds for general purposes such as funding new building installments and capital conversion projects.
About 3.59 shares of Teekay Offshore Partners have been traded so far today, well above the company's average trading volume of roughly 683,790 shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.
Teekay's strengths such as its robust revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: TOO
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.