|Resource Capital Trading on Heavy Volume|
NEW YORK ( TheStreet) -- Resource Capital ( RSO) shares tumbled Thursday after the company was among the latest to price a secondary offering of common shares at a discount. Resource Capital said it has priced a public offering of 7.5 million shares of its common stock at $5.25 per share, a discount of 7.4% to Wednesday's closing price. Underwriters were granted a 30-day option to purchase up to an additional 1.12 million shares of common stock to cover overallotments, if any. Proceeds to Resource Capital, after the underwriting discount but before expenses, will be approximately $37.2 million. In its prospectus filed May 17, Resource Capital proceeds will be used for general corporate purposes, including acquisition of investments, loan originations and working capital. Proceeds may also be used to repurchase a portion of the company's outstanding CDO notes.
The expected dilutive effect of the offering pressured shares of Resource Capital. Shares dropped by 44 cents, or 7.8%, to $5.23. Elsewhere, Vitamin Shoppe ( VSI - Get Report) said it has priced a secondary offering of approximately 6.23 million shares of common stock at $23.50 per share. Shares are being sold by certain stockholders, and Vitamin Shoppe will not receive any proceeds from the offering. Still, shares were down 22 cents, or 0.9%,t o $23.49. Meanwhile, Mylan ( MYL - Get Report) and Astoria Financial ( AF) each filed for a mixed shelf offering for an indeterminate amount. Mylan shares fell 2.1% to $19.80, and Astoria Financial lost 6.1% to $14.98. In addition, two companies priced initial public offerings of common stock. Accretive Health ( AH) priced its IPO of 10 million shares of common stock at $12 per share. Accretive had initially said it would offer 13.33 million shares in a range of $14 to $16 each. Lately, shares were up to $13.58. ReachLocal ( RLOC) priced its own IPO of 4.16 million shares at $13 per share, which was well below the expected range of $17 to $19 per share. Lately, shares were up o $13.55. -- Written by Robert Holmes in Boston. Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.