Why South Jersey Industries Stock Sank 17% in Early Trading Today
Shares of natural gas utility South Jersey Industries (NYSE: SJI) fell sharply in morning trading on March 17, losing a little more than 16%. The most obvious reason for the negative mood here was a news release posted after the market closed on March 16.
South Jersey Industries plans to sell $225 million worth of shares of its common stock and 6 million equity units, which, according to the company, is an "aggregate stated amount of $300 million of Equity Units." The underwriters have the option to buy an additional $33.75 million worth of shares and 900,000 additional equity units. The equity units have a stated amount of $50 and "will initially consist of a contract to purchase shares of Common Stock and a 1/20, or 5%, undivided beneficial ownership interest in $1,000 principal amount of the Company's 2021 Series B remarketable junior subordinated notes due 2029."
Image source: Getty Images.
Source Fool.com
