NEW YORK (TheStreet) -- NGL Energy Partners (NGL) stock is moving lower on Wednesday after the company announced and priced its underwritten public offering of 8 million shares of common stock at $43.85 per unit. Underwriters have been granted a 30-day overallotment option to purchase up to 1.2 million additional shares.
The offering is expected to close on June 23 and NGL intends to use net proceeds to repay indebtedness and for general partnership purposes, including capital expenditures and potential acquisitions. Bank of America, Barclays, Wells Fargo, Deutsche Bank, RBC Capital Markets, UBS, Goldman Sachs and Raymond James are acting as joint bookrunners for the offering.
By late afternoon, shares had dropped 6.8% to $42.55. Trading volume of 5.8 million shares was 31 times higher than its three-month daily average
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TheStreet Ratings team rates NGL ENERGY PARTNERS LP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NGL ENERGY PARTNERS LP (NGL) a BUY. This is driven by a few notable 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. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, solid stock price performance 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."