By market open, shares had tanked 11.9% to $7.36.
The company's largest shareholder, Tsakos Holdings Foundation, said affiliated entities would likely purchase up to 10% of common shares sold in the offering. Additionally, underwriters have been granted a 30-day option to purchase up to an additional 1.65 million common shares.
In a statement, the company said it plans to use net proceeds to "finance the expansion and
modernization of its fleet through its vessel acquisition program, including installment
payments on its existing crude oil carrier newbuilding program pursuant to its strategic
partnership with a well-known oil major."
Morgan Stanley, UBS and Wells Fargo are acting as joint book-running managers of the offering.
TheStreet Ratings team rates TSAKOS ENERGY NAVIGATION LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TSAKOS ENERGY NAVIGATION LTD (TNP) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."