NEW YORK -- Penn Virginia's stock declined more than 14 percent Tuesday after the oil and gas company announced a public stock offering and preferred equity offering.
THE SPARK: Penn Virginia said Monday that it is offering 12 million shares of its common stock and $50 million in depositary shares. The depositary shares represent a fractional ownership stake in a share of preferred stock.
The Radnor, Pa. company said that it plans to use the offerings' net proceeds to pay back remaining outstanding borrowings under its revolving credit facility and for general corporate purposes.
The closings of the stock offering and preferred equity offering are not contingent on each other.
SHARE ACTION: Shares of Penn Virginia Corp. fell 96 cents, or 14.7 percent, to $5.57 in morning trading. The stock has traded in a 52-week range of $3.92 to $7.74. For the year to date, the shares are up 19 percent.