NEW YORK (TheStreet) -- Exelon Corp (EXC) shares are dropping, down -2.5% to $36.21, in after-hours trading on Tuesday after the company announced its common stock and equity options offerings.
The company said that it was commencing with the offering of 50 million shares of common stock along with 20 million equity units with an aggregated stated amount of $1 billion in order to fund part of its proposed acquisition of Pepco Holdings (POM).
Exelon will enter into forward sales agreements with an affiliate of Goldman Sachs (GS) and Bank of America (BAC) as part of the offering.
TheStreet Ratings team rates EXELON CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXELON CORP (EXC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."