NEW YORK (TheStreet) -- Shares of Teekay Tankers (TNK) were falling 15.9% to $4.54 Friday after the shipping company announced the pricing of its public offering of 20 million shares of Class A common stock.
Teekay Tankers priced the 20 million shares of Class A common stock in its public offering at $4.80 a share. The underwriters of the offering have a 30-day option to buy up to 3 million additional shares.
The company announced that Teekay Corporation will also purchase $20 million of Class A common stock at the same cost as the share in the public offering.
Teekay Tankers plans to use the net proceeds from the offering and Teekay Corporation's investment to partially finance its acquisition of four modern coated Aframax tankers and one modern uncoated Aframax tanker, and for general corporate purposes.
TheStreet Ratings team rates TEEKAY TANKERS LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEEKAY TANKERS LTD (TNK) 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, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."