NEW YORK (TheStreet) -- Shares of GasLog Partners LP (GLOP) were tanking, sharply down 7.52% to $23.12 on heavy volume in early market trading Tuesday, after the company priced its public offering of common stock this morning.
The liquefied natural gas transportation company announced that it had priced 7.5 million shares at $23.90 a shares. The underwriters have a 30-day option to buy an additional 1.125 million shares.
The company plans to use the net proceeds from the offering to fund the previously announced acquisition of 100% of the ownership interests in GAS-nineteen Ltd., Gas-twenty Ltd. and GAS-twenty one Ltd from GasLog Ltd. (GLOG).
Citigroup Global Markets (C), Barclays Capital (BCS), Morgan Stanley & Co (MS), Evercore Group (EVR), UBS Securities (UBS), Wells Fargo Securities (WFC), Credit Suisse Securities (CS), and Deutsche Bank Securities (DB) are acting as joint book-running managers for the offering.
About 941,240 shares have changed hands as of 9:44 a.m. ET today, compared to its average trading volume of about 64,681 shares a day.
Separately, TheStreet Ratings team rates GASLOG PARTNERS LP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:Monaco-based GasLog Partners LP is a growth-oriented master limited partnership focused on owning, operating and acquiring LNG carriers under long-term charters.
"We rate GASLOG PARTNERS LP (GLOP) 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, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GLOP's very impressive revenue growth greatly exceeded the industry average of 38.7%. Since the same quarter one year prior, revenues leaped by 57.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GASLOG PARTNERS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($2.15 versus $1.48).
- GLOP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 25.93%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter.
- In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, GASLOG PARTNERS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The debt-to-equity ratio of 1.14 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, GLOP's quick ratio is somewhat strong at 1.23, demonstrating the ability to handle short-term liquidity needs.
- You can view the full analysis from the report here: GLOP Ratings Report