NEW YORK (TheStreet) -- Delek US Holdings (DK) stock is lower Thursday after pricing its secondary offering of 9.2 million shares of common stock. The stock, offered by selling stockholder Delek Hungary Holdings, will be sold at $30 a share. Additionally, the underwriters have been granted a 30-day option to purchase up to an additional 1.38 million shares of common stock.
By late morning, shares had fallen 4.2% to $29.81.
The offering is expected to close around May 20, subject to customary closing conditions. Barclays, Bank of America, Wells Fargo, Goldman Sachs and RBC Capital Markets are acting as joint book-running managers for the offering.
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TheStreet Ratings team rates DELEK US HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DELEK US HOLDINGS INC (DK) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."