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Small-Cap Stock in News: CompuCredit Holdings Corp. (CCRT)

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Shares of CompuCredit Holdings Corp. (NASDAQ: CCRT), a provider of various credit and related financial services and products to or associated with the financially underserved consumer credit market, plunged in Thursday’s trading session.

The small-cap stock of CCRT ended the day 28.83% lower at $4.37. The stock touched an intra-day low of $4.19 in Thursday’s trading session.

CCRT shares plunged after the company announced preliminary results of its cash tender offer to purchase up to 8,250,000 shares of its common stock, no par value per share, at a purchase price of $10 per share. The tender offer expired at 11.59 PM, EST on September 12, 2012.

CCRT said that as of expiration date, 23,229,491 shares of common stock were validly tendered and not withdrawn in the tender offer, which includes 3,213,680 shares tendered through notice of guaranteed delivery. Based on this, CCRT expects to accept for payment 8,250,000 shares of common stock at a purchase price of $10 per share, for a total cost of around $82.5 million.

The tender offer was announced by the company last month.

Last month, CCRT also announced the sale of its charged-off debt buying operations, Jefferson Capital to Flexpoint Fund II L.P. for $130.5 million, of which $10.8 million will be received by CCRT if certain performance targets are met by December 31, 2014.

David G. Hanna, Chairman and CEO of CompuCredit, said last month that he is very pleased with the terms of agreement as it provides the company a very favorable return on its Jefferson Capital investment as well as capital that can be used for expansion of CCRT’s point-of-sale retail customer lending platform, auto lending platform and other businesses with long-term growth potential that provide attractive returns. Hanna added that CCRT is actively exploring other uses of the capital generated by the sale, including stock buybacks and dividends.

Posted by on Friday, September 14th, 2012. Filed under Internet, Stocks. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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