Key Developments For Penson Worldwide, Inc.
Penson Worldwide, Inc. (PNSN.O) (Nasdaq)
Penson Worldwide, Inc. Files Universal Shelf Registration Statement
Penson Worldwide, Inc. announced that it has filed a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC) which the Company may utilize from time to time during the three years following the date it becomes effective, subject to applicable laws. The Company may use net proceeds from the sale of securities under the shelf registration statement for working capital and general corporate purposes, including the repayment of existing debt and investments in subsidiaries or for acquisitions. When declared effective by the SEC, the Company may offer and sell from time to time, up to $175 million of equity, debt or other types of securities described in the registration statement, or any combination thereof, in one or more future public offerings. The Company does not currently have any commitments with respect to a sale of securities under the registration statement. Any future offerings will be made only by means of a written prospectus authorized by the Company. The terms of any future offering would be established at the time of such offering subject to market conditions.
Penson Worldwide, Inc. To Acquire Ridge Clearing Contracts From Broadridge Financial Solutions, Inc; Enters into Outsourcing Arrangement With Broadridge Broadridge Financial Solutions, Inc
Penson Worldwide, Inc. announced that it has entered into a global strategic relationship with Broadridge Financial Solutions, Inc. The relationship is based on a series of agreements that involve: (1) Penson acquiring the clearing contracts of Broadridge`s Ridge correspondent clearing and execution business for consideration in the form of a promissory note and stock; (2) if needed, Broadridge providing certain financing; (3) Broadridge supplying technology and certain processing functions on an outsourced basis for Penson`s US, Canadian and UK securities clearing brokers; and (4) the two companies offering each other`s services to various customers and prospects on a global basis. Penson will acquire the clearing contracts of the Ridge clearing business for approximately $60-70 million.
Penson Worldwide, Inc. Reaffirms FY 2009 Guidance-Conference Calls
Penson Worldwide, Inc. reaffirmed its fiscal 2009 financial guidance of a 3% to 5% increase in net revenues and approximately $45 million in pre-tax profit. The Company reported revenue of $293.17 million for fiscal 2008.
Penson Worldwide, Inc. Prices Convertible Notes
Penson Worldwide, Inc. announced that it has agreed to offer $50 million aggregate principal amount of 8.00% convertible senior notes due 2014. Penson has also granted an option to the initial purchasers to purchase up to an additional $10 million in principal amount of notes to cover over allotments. Upon conversion, holders will receive, at the election of Penson, cash, common stock or a combination of cash and common stock. The conversion rate will be 101.9420 shares of common stock per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $9.81 per share of common stock. The conversion rate will be subject to adjustment upon the occurrence of specified events. The sale of the notes is expected to close on June 3, 2009. Penson intends to use net proceeds from this offering to pay down some of its existing $70 million of corporate debt, provide ongoing working capital and provide for other general corporate purposes.
Penson Worldwide, Inc. To Offer Convertible Notes
Penson Worldwide, Inc. announced that it is planning to offer $50 million aggregate principal amount of convertible senior notes due 2014, subject to market and other customary conditions. The Company may sell up to an additional aggregate $10 million of notes upon exercise of an over-allotment option that the Company expects to grant to the initial purchasers in connection with the offering. Upon conversion, holders will receive, at the election of the Company, cash, common stock or a combination of cash and common stock. The Company intends to use the net proceeds from this offering to pay down some of its existing $70 million of corporate debt, provide ongoing working capital and provide for other general corporate purposes.
