NEW YORK (TheStreet) -- Shares of Frontier Communications (FTR) were gaining 2% to $5.10 on heavy trading volume Friday after the telecommunications company priced two public offerings which will help pay for wireline acquisitions from Verizon (VZ).
Frontier Communications priced that public offering of $750 million of common stock at $5 a share. The company also priced the $1.750 billion of 11.125% Mandatory Convertible Preferred Stock, Series A at a public offering price of $100 a share.
The underwriters of the offerings have a 30-day option to purchase up to an additional 15 million shares of common stock and an addition 1.75 million shares of Mandatory Convertible Preferred Stock.
The offerings are expected to close on June 10.
Frontier Communications plans to use the proceeds from the offerings to finance part of its acquisitions of Verizon wireline properties in California, Florida, and Texas.
About 119 million shares of Frontier Communications were traded by 11:20 a.m., well above the company's average trading volume of about 13.8 million shares a day.
TheStreet Ratings team rates FRONTIER COMMUNICATIONS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRONTIER COMMUNICATIONS CORP (FTR) 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 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."