Nationstar Mortgage (NSM) investors aren’t happy about its offering of 17.5 million of common stock – the mortgage nonbank is down more than 10% through mid-day after it announced yesterday common stock offering for gross proceeds of approximately $500 million.

Nationstar granted the underwriters a 30-day option to purchase up to an additional 2,625,000 shares of its common stock. Citigroup, Barclays and J.P. Morgan are acting as the underwriters for the offering.

Nationstar intends to use the net proceeds from the sale for “general corporate purposes,” which may include future acquisitions, transfers of servicing portfolios, funding of advances and repayment of obligations, including corporate indebtedness.

These acquisitions are expected to include the acquisition of $60 billion unpaid principal balance of mortgage servicing rights in process or under letters of intent as of the date of the prospectus supplement, the consummation of which is subject to definitive documentation, regulatory approvals, and/or other customary conditions.