Major clean-up for Penson
15 March 2012 Dallas
Image: Shutterstock
Penson Worldwide is looking to reduce its debt of $176 million through exchange offers for its debt holders.
The securities clearing firm announced that the majority of its debt holders had consented to an agreement whereby their debt would be reduced through an exchange offer for new debt and equity securities.
After seven consecutive quarters of loss, with the net loss for the fourth quarter of 2011 totalling $185 million, the Dallas-based company has had to take drastic measures to reduce their debt.
Stating: 'significant reductions in trading volumes' and a historically low targeted federal funds rate as the reasoning behind this new agreement, the company has also decided to restructure their team.
Michael Chochon has been appointed executive vice president effective March 12, with Kevin McAleer to retire by March 31, 2012.
Last year, Penson stated its intention to sell its Australian subsidiary to BNY Mellon, and its UK operation to third parties, the latter of which was running at an annual loss of $6-7 million.
Philip Pendergraft, chief executive officer of Penson, said: “We are pleased to have reached this agreement with owners of a majority of our long-term funded corporate debt – a move that we expect will significantly strengthen the company’s financial position and core business.”
The securities clearing firm announced that the majority of its debt holders had consented to an agreement whereby their debt would be reduced through an exchange offer for new debt and equity securities.
After seven consecutive quarters of loss, with the net loss for the fourth quarter of 2011 totalling $185 million, the Dallas-based company has had to take drastic measures to reduce their debt.
Stating: 'significant reductions in trading volumes' and a historically low targeted federal funds rate as the reasoning behind this new agreement, the company has also decided to restructure their team.
Michael Chochon has been appointed executive vice president effective March 12, with Kevin McAleer to retire by March 31, 2012.
Last year, Penson stated its intention to sell its Australian subsidiary to BNY Mellon, and its UK operation to third parties, the latter of which was running at an annual loss of $6-7 million.
Philip Pendergraft, chief executive officer of Penson, said: “We are pleased to have reached this agreement with owners of a majority of our long-term funded corporate debt – a move that we expect will significantly strengthen the company’s financial position and core business.”
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