BOSTON ( TheStreet) -- Annaly Capital Management ( NLY) shares tumbled after the company announced a public offering of 60 million shares of common stock.
Annaly Capital said it expects gross proceeds of roughly $1.1 billion from the public offering. Annaly has also granted underwriters a 30-day option to purchase up to an additional 9 million shares of common stock solely to cover overallotments. Annaly expects to use the proceeds from the offering to purchase mortgage-backed securities for its investment portfolio and for general corporate purposes. Shares of Annaly Capital slumped by 72 cents, or nearly 4%, to $17.54. More than 12.5 million shares changed hands about 30 minutes into Wednesday's trading session, compared to the average daily share volume of 12.9 million. Elsewhere, Magellan Midstream Partners ( MMP) shares slid nearly 3% after the petroleum products company priced a public offering of 5 million units offering at $46.65 per unit. Magellan Midstream said net proceeds of approximately $225 million will be used to pay a portion of the purchase price for the pending acquisition of petroleum storage and pipeline assets from BP ( BP). Shares of Magellan Midstream fell by $1.33, or 2.8%, to $46.91. Volume topped 1.42 million shares, well above the average daily share volume of 268,000. Arcadia Resources ( KAD) shares were trading flat after the health care services provider filed for a $25 million mixed shelf offering. The company called it a "proactive measure that will give Arcadia flexibility to access additional capital." The stock was unchanged at 46 cents. In IPO news, coal miner Oxford Resource Partners ( OXF) priced its initial public offering of 8.75 million shares of common stock at $18.50 per share, at the low end of its projected range of $18 to $20. The stock, which began trading Wednesday under the ticker "OXF," was lately down to $18.03. -- Written by Robert Holmes in Boston. Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.