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Asta Funding commences modified Dutch auction tender offer


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Asta Funding commences modified Dutch auction tender offer

Asta Funding Inc.on April 11 announced the commencement of a modified Dutch auction self-tender offerto purchase for cash up to 3 million common shares at a price per share not greaterthan $10.25 nor less than $9.50, less applicable withholding taxes and without interest.

The tender offer will expire May 12 at 5 p.m. ET, unless extendedor withdrawn by the company. The company will use a portion of its cash and cashequivalents on hand and securities available for sale to fund the purchase of sharesin the tender offer.

The company said the tender offer allows stockholders to tendertheir shares pursuant to either auction tenders, whereby stockholders indicate atwhat price within the company's specified range, in increments of 25 cents per share,they wish to tender, or purchase price tenders, whereby stockholders indicate theyare willing to sell their shares to the company at the purchase price determinedin the tender offer. The company will determine the purchase price upon the expirationof the offer, which will be the lowest price per share within the company's specifiedrange that will enable it to purchase 3 million shares properly tendered and notwithdrawn.

The company also reserves the right to purchase up to an additional2% of its shares outstanding pursuant to and without amending or extending the tenderoffer.

Keefe Bruyette & Woods Inc. will serve as dealer manager,Georgeson Inc. will serve as information agent, and American Stock Transfer &Trust Co. LLC will serve as depositary for the tender offer.

The board of Asta Funding previously urged stockholders to The Mangrove Partners MasterFund Ltd. unit MPF Investco 4 LLC's unsolicited tender offer to acquire up to 3million Asta Funding common shares at $9.00 per share and had announced its plansto commence an issuer tender offer.