Alesco must regain NYSE listing compliance or face puts of 7.625% convertibles

By Angela McDaniels

Tacoma, Wash., Nov. 5 - Alesco Financial Inc. may be facing a put option under its 7.625% convertible senior notes due 2027 if its common stock continues to trade at recent levels, according to its 10-Q report for the third quarter filed with the Securities and Exchange Commission.

The company fell out of compliance with a New York Stock Exchange listing standard that says the average closing price of its common stock cannot fall below $1.00 per share for any consecutive 30-trading-day period. Alesco has six months from Oct. 10 to cure this deficiency.

If the company is unable to regain compliance, its stock will be delisted from the NYSE. If it is then unable to list its stock on a national securities exchange or over-the-counter trading market, holders will have the right to put their convertibles back to the company at par plus accrued interest.

The principal amount of convertibles currently outstanding is $28.7 million.

Alesco is a specialty finance real estate investment trust based in Philadelphia.

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