NEW YORK (TheStreet) -- ONEOK Partners (OKS) stock is tumbling after the bell following the announcement of its public offering of 11 million shares of common stock. After the bell, shares had dropped 3.6% to $52.90.
Underwriters will also be granted a 30-day option to purchase up to an additional 1.65 million common units.
In a statement, the company said it expects to use net proceeds of the offering for "general partnership purposes and to repay amounts outstanding under its commercial paper program."
Bank of America, Barclays, Morgan Stanley, UBS, Wells Fargo Securities, Citigroup, Deutsche Bank, Goldman Sachs, JPMorgan and RBC Capital Markets are acting as joint book-running managers in the public offering.
TheStreet Ratings team rates ONEOK PARTNERS -LP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ONEOK PARTNERS -LP (OKS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: