PBF Energy Slides 7% on $500M Exchangeable Notes Offering
PBF has more than doubled off its 52-week low of $25.62.
Summary
PBF Energy announced a $500 million private offering of exchangeable notes due 2032, with an option for an additional $50 million. The stock fell 7% to $72.73 on the news, though shares have nearly tripled this year. Proceeds will repay the 7.875% senior notes due 2030. The offering follows a strong Q2 and insider selling by directors and the CEO. The market is reacting to the dilution risk and the use of proceeds for debt repayment rather than growth.
At the time of this announcement, PBF was trading at $72.72 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $8.6B. The 52-week trading range was $25.62 to $82.61. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.