NEW YORK (TheStreet) -- AmeriGas Partners (APU) stock is falling Thursday after pricing its previously-announced underwritten offering of 8.5 million shares of common stock for $45.80 per unit. Selling stockholder Heritage ETC will receive all proceeds. Underwriters have also been granted a greenshoe option to purchase up to approximately 1.2 million shares.
The offering is expected to close June 17. Citigroup, Morgan Stanley, UBS, Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, RBC Capital Markets and Wells Fargo Securities are acting as joint book-running managers. Ladenburg Thalmann is acting as co-manager.
By midmorning, shares had dropped 5.7% to $44.90. Trading volume of 4.3 million was 15 times its three-month daily average.
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Separately, TheStreet Ratings team rates AMERIGAS PARTNERS -LP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERIGAS PARTNERS -LP (APU) 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 growth in earnings per share, robust revenue growth, notable return on equity, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."