NEW YORK (TheStreet) -- Shares of Ferrellgas Partners (FGP) were falling 2.3% to $22.50 on heavy trading volume Wednesday after the propane company announced the pricing of the 6.325 million common units in its public offering.
Ferrellgas Partners priced the 6.325 million common units in the public offering at $23 a share. The company granted the underwriters of the offering a 30-day option to purchase 948,750 additional common units.
The company expects net proceeds of about $139.7 million, or about $160.6 million if the option is exercised in full. Ferrellgas Partners plans to use the net proceeds from the offering to fund part of the cash portion of the consideration for the pending acquisition of all of the outstanding membership interests of Bridger Logistic and its subsidiaries.
The offering is expecting to close on June 8, 2015.
About 2.4 million shares of Farrellgas Partners were traded by 10:21 a.m. Wednesday, well above the company's average trading volume of about 252,000 shares a day.
TheStreet Ratings team rates FERRELLGAS PARTNERS -LP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FERRELLGAS PARTNERS -LP (FGP) 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 increase in net income, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins."