BOSTON, MA -- (Marketwired) -- 11/12/13 -- The First Marblehead Corporation (NYSE: FMD) today announced that it plans to effect a 1-for-10 reverse stock split of its outstanding common stock, which will be effective for trading purposes as of the commencement of trading on December 3, 2013. As of that date, each 10 shares of issued and outstanding common stock will be consolidated into 1 share of common stock. The reverse stock split will not change the par value of the common stock.
Stockholders who hold their shares in brokerage accounts or "street name" will not be required to take any action to effect the exchange of their shares. Holders of share certificates will receive instructions from the Company's transfer agent regarding the process for exchanging their shares.
About The First Marblehead Corporation
First Marblehead helps meet the need for education financing by offering national and regional financial institutions and educational institutions the Monogram® platform, an integrated suite of design, implementation and credit risk management services for private label, customizable private education loan programs. For more information, please see www.firstmarblehead.com. First Marblehead supports responsible lending and is a strong proponent of the smart borrowing principle, which encourages students to access scholarships, grants and federally-guaranteed loans before considering private education loans; please see www.SmartBorrowing.org. Through its subsidiary, Union Federal Savings Bank, First Marblehead offers private education loans, residential and commercial mortgage loans, and retail savings, money market and time deposit products. For more information, please see www.unionfsb.com. First Marblehead also offers outsourced tuition planning, billing, payment technology services and refund management services through its subsidiary, Tuition Management Systems LLC. For more information, please see www.afford.com. Through its subsidiary, Cology LLC, First Marblehead offers private education loan processing and disbursement services as well as life-of-loan servicing for lenders. For more information, please see www2.cology.com.
Statements in this press release regarding First Marblehead's plans and expectations with respect to a proposed reverse stock split of our common stock constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon our plans, estimates and expectations as of November 12, 2013. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future results, plans, estimates, intentions or expectations expressed or implied by us will be achieved. You are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including legal, regulatory and other factors, which may cause our proposed reverse stock split or the timing of such reverse stock split to be materially different than expressed or implied by forward-looking statements. We specifically disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, even if our expectations change, and you should not rely on those statements as representing our views as of any date subsequent to the date of this press release.
© 2013 The First Marblehead Corporation
Chief Financial Officer
The First Marblehead Corporation
800 Boylston Street, 34th FL
Boston, MA 02199
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