NEW YORK (TheStreet) -- Shares of Scorpio Bulkers (SALT) were falling 3.1% to $1.55 on heavy trading volume Thursday after the shipping company priced the 133 million shares of common stock in its public offering.
Scorpio Bulkers priced the 133 million shares of common stock in the public offering at $1.50 a share. The company said that Scorpio Services Holdings and certain executive officers agreed to buy an aggregate 10 million shares at the offering price.
The underwriters of the offering have a 30-day option to buy up to an additional 19.95 million common shares.
The offering is expected to close on June 16, 2015.
Scorpio Bulkers said it will use the proceeds from the offering for installments payments due under its Newbuilding Program, for general corporate purposes, and for working capital.
About 19.2 million shares of Scorpio Bulkers were traded by 10:19 a.m. Thursday, above the company's average trading volume of about 1.3 million shares a day.
TheStreet Ratings team rates SCORPIO BULKERS as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCORPIO BULKERS (SALT) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."