Why Memorial Production Partners (MEMP) Stock Is Down Today

NEW YORK (TheStreet) -- Shares of Memorial Production Partners  (MEMP) fell 3.8% to $22.28 in morning trading Thursday on high volume after the company priced an offering of common units.

The company priced 13 million units at $22.29 a unit. The offering contains a 30-day option for underwriters to purchase up to an additional 1.95 million units. The company expects the offering to close on Sept. 9.

Memorial Production Partners expects net proceeds of approximately $279.9 million, or $321.9 million if the underwriters fully exercise their options. The company plans to use the proceeds to repay part of its outstanding borrowings under its revolving credit facility.

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More than 6.3 million shares had changed hands as of 10:12 a.m., compared to the average volume of 531,697.

Separately, TheStreet Ratings team rates MEMORIAL PRODUCTION PRTRS LP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate MEMORIAL PRODUCTION PRTRS LP (MEMP) 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 robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

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Wednesday's Ex-Dividends To Watch: MEMP, STON, SXT