Thursday after the markets closed, education financier First Marblehead Corp. (FMD) announced that the second part of the investment by GS Capital Partners or GSCP, a private equity of Goldman Sachs Group Inc. (GS), was delayed due to pending regulatory approvals.
In December 2007, GSCP agreed to invest up to $260.5 million, of which $59.8 million was put in immediately in convertible securities at a conversion price of $11.24 a share. The remaining $200.7 million was to be used to buy additional convertible securities at a conversion price of $15.00 a share, and to be completed by the end of Marblehead's fiscal year ending June 30.
Marblehead's shares are however on a downtrend as it is hasn't been able to offer any asset-backed securities to investors. The company's stock closed on Thursday at $2.92, trading in a 52-week range of $2.88 - $42.50. Marblehead's stock value is much lesser than the $15.00 a share price that GSCP agreed to pay.
First Marblehead expects the investment to be completed in the first quarter.
For comments and feedback: editorial@rttnews.com