Aerospace component manufacturer (NYSE: DCO) is raising cash to pay down its debt, but the offering came at a significant discount to the company's share price. Investors are now sending the stock down toward that level, chopping about 16% off of Ducommun's shares as of 1 p.m. ET.

Ducommun is a manufacturer of complex components for customers in the aerospace, defense, and industrial markets. It can be a commoditized business at times, and scale matters. Ducommun, like many of its peers, uses mergers and acquisitions to add to its scale, and earlier this month completed a purchase of BLR Aerospace.

Now the company is looking to pay down the debt it took on to buy BLR. Late Monday, Ducommun announced a 2 million share secondary offering to raise cash to repay what it took out of its revolving credit facility to finance the acquisition.

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Source Fool.com