What happened Shares of Core Laboratories (NYSE: CLB) sank today, down by 9% as of 2:30 p.m. EST, after the company announced a secondary offering. Core Laboratories is looking to raise $60 million. So what The deal will be conducted as an at-the-market (ATM) offering, with distribution partner banks selling shares into the market at prevailing prices. Like all stock offerings, this one will be dilutive to existing shareholders. The company, which provides services to the oil and gas industry, had approximately 44.5 million shares outstanding at last count. Image source: Getty Images. Core Laboratories intends to use the net proceeds from the offering for general corporate purposes, which could include capital expenditures and paying down debt. The amount of cash that the company might raise will depend on how many shares it ultimately sells and at what prices. Now what Core Laboratories notes in the offering prospectus that it had $123 million in outstanding borrowings under its revolver. That credit facility has a total capacity of $225 million, and the company can increase that by up to $50 million if necessary. The company has been working to pay down debt by allocating its free cash flow toward debt repayment. Free cash flow was $18.5 million in the third quarter, and Core Laboratories reduced its net debt load by $16.2 million last quarter. "We continue to project Core Lab will remain profitable, compliant with the financial covenants under our debt agreements, and generate free cash flow, which will continue to be focused on reducing debt for the foreseeable future," CFO Chris Hill commented on the last earnings call. 10 stocks we like better than Core LaboratoriesWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Core Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Core Laboratories. The Motley Fool has a disclosure policy.Source