NEW YORK (TheStreet) -- Shares of Blueknight Energy Partners (BKEP) are down 0.79% to $7.55 in after-hours trading following the commencement of an underwritten public offering of 8.5 million common units representing limited partner interests of the partnership.
The company is a limited partnership providing terminalling storage, processing, gathering and transportation services, and it wiill also grant the underwriters a 30-day option to purchase up to 1.275 million additional common units.
The partnership intends to use the net proceeds from the offering, including any net proceeds from the underwriters' exercise of their option to purchase additional common units, for general partnership purposes, including the repayment of a portion of the outstanding borrowings under the Partnership's credit facility and partially funding the Partnership's Eaglebine pipeline project.
Wells Fargo Securities (WFC) , RBC Capital Markets and Bank of America/Merrill Lynch (BAC) will act as joint book-running managers for the offering. Stephens Inc. and SunTrust Robinson Humphrey will act as co-managers for the offering.
Shares of Blueknight were down 8.86% to $7.61 at closing.
TheStreet Ratings team rates BLUEKNIGHT ENERGY PRTNRS LP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLUEKNIGHT ENERGY PRTNRS LP (BKEP) 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, notable return on equity 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 weak operating cash flow."