Teekay Tankers Ltd. (TNK) said that it would sell 7 million shares of common stock in a public offering priced at $9.80 per share, which is a 7.6% discount to TNK’s Thursday close of $10.61.
Through the proceeds, the company plans to acquire the Ashkini Spirit, a 2003 Suezmax tanker, for $57 million from Teekay Corp. (TK). It also aims to pay down outstanding debt under a credit facility.
Shares of this Zacks #5 Rank (“strong sell”) company have traded down by more than 13% today on volume of 3.3 million shares, well ahead than its daily average of 173,939.
Morgan Stanley (MS) and Citigroup (C) are the underwriters for the offering and have been granted the option of acquiring a further 1.1 million shares.
The stock offering is expected to close on Jun 24.
“TNK” Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research
