NEW YORK (TheStreet) -- Shares of Pinnacle Foods Inc. (PF) are down 4.38% to $32.08 after the company announced that certain of its stockholders, consisting primarily of affiliates of Blackstone Group (BX) , intend to offer for sale in an underwritten secondary offering 15 million shares of the company's common stock, pursuant to the company's shelf registration statement to be filed with the SEC.
In addition, the bookrunners will have an option to purchase up to an additional 2.25 million shares from the selling stockholders. The registration of the offering and the sale of the shares are being effected pursuant to Blackstone's registration rights under a registration rights agreement among the company and certain of its stockholders.
The selling stockholders will receive all of the proceeds from this offering. No shares are being sold by the company. The company expects the offering to close on September 12.
TheStreet Ratings team rates PINNACLE FOODS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PINNACLE FOODS INC (PF) 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, increase in stock price during the past year and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."