Shares of Westinghouse Air Brake Technologies Corp. (NYSE: WAB) fell as much as 13.9% in trading Friday as investors headed for the exits before the weekend. As of 3:20 p.m. EDT, shares were still down 11.7% on the day.
There wasn't any major news today, but there was some notable news earlier this week. On Wednesday, the company priced an offering of $2.5 billion of senior notes, which closed Friday morning. It will be used to acquire GE's transportation business and the $2.9 billion of cash owed.
Investors have known about this offering for a few days, but today is when it hit the stock. Traders might also be seeing more risk in the stock, now that it has more debt on the balance sheet.
I wouldn't read too much into the move today. Sometimes stocks can swing wildly even on little news, and I wouldn't call the closing of senior notes a bigger news item than it should have been a few days ago. The value for shareholders will be added if GE Transportation makes money, and that's a long-term play on the future of rail transportation.