Asta Funding (ASFI) – Odd Lot Tender Offer – minimal upside currently

Current Price – $10.01

Offer Price – $9.5 - $10.25

Upside – potentially 2.5% or $24 (if the upper pricing limit is used)

Expiration date –  12 May 2016

No proration for holders of less than 100 shares

SEC Filling

 

Summary:

Asta Funding, Inc. is offering to purchase for cash up to 3,000,000 shares of its common stock, pursuant to auction tenders at prices specified by the tendering stockholders of not greater than $10.25 per Share nor less than $9.50 per Share. Assuming the Offer to Purchase is fully subscribed, at 3,000,000 Shares, this would represent approximately 24.96% of our issued and outstanding Shares as of April 11, 2016. At the minimum offer price of $9.50, this would result in an aggregate Purchase Price of $28.50 million and at the maximum offer price of $10.25, this would result in an aggregate Purchase Price of $30.75 million

 

Odd lot holders

If you own fewer than 100 Shares in the aggregate, you properly tender and do not withdraw all of these Shares at or below the Purchase Price prior to the Expiration Date and you complete (or, for a beneficial owner, your broker, dealer, commercial bank, trust company or other nominee completes) the section entitled “Odd Lots” in the Letter of Transmittal and, if applicable, in the Notice of Guaranteed Delivery, and all conditions to the Offer are satisfied or waived, we will purchase all of your Shares without subjecting them to proration.

 

Source and amount of funds

As of December 31, 2015, we had approximately $22.5 million in cash and cash equivalents and $55.0 in securities available for sale. We will fund any purchase of Shares pursuant to the Offer, including related fees and expenses, from cash and cash equivalents on hand and through the sale of available for sale securities. The Offer is not conditioned upon the receipt of financing.