NEW YORK (TheStreet) -- CVR Refining (CVRR) stock is dropping on Wednesday after announcing and pricing a public offering of 6.5 million common units of stock at $26.07 per share. Underwriters have also been granted the option to purchase up to an additional 975,000 shares.
Credit Suisse, Barclays, Citigroup, Jefferies, JPMorgan, Morgan Stanley and UBS are acting as joint book-running managers. The offering is expected to close on June 30.
By midmorning, shares had dropped 8.2% to $24.91. Trading volume of 4.4 million shares was 11 times its three-month daily average.
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Separately, TheStreet Ratings team rates CVR REFINING LP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CVR REFINING LP (CVRR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: