BOSTON – First Marblehead Corp. will change its name to Collegiate Trust Co. by Sept. 30,
2014, the end of its fiscal year, according to a Nov. 12 report in Boston Business Journal. The planned named change was announced by First Marblehead Chairman and CEO Dan Meyers during the annual stockholders meeting, according to the article.
First Marblehead Corp. announced on Nov. 12 that it plans a 1-for-10 reverse stock split of its outstanding common stock, which will be effective for trading purposes at the start of trading Dec. 3. The reverse stock split will enable the company to keep trading on the New York Stock Exchange, according to a Nov. 12 article in
The reverse stock split would allow First Marblehead to comply with the requirement that shares on the NYSE trade above an average price of $1. The company's stock dropped below that minimum in August after First Marblehead said it was being audited by the Internal Revenue Service in connection with the sale of its interest in NC Residual Owners Trust in 2009, according to American Banker.
The $491 million-asset First Marblehead Corp., which specializes in providing private student loans to lenders, credit unions and schools, plans to operate under its new name by June 30, 2014, Chief Financial Officer Kenneth Klipper told American Banker.
First Marblehead has been the parent company of North Providence-based Union Federal Savings Bank since 2006.