Futures and options broker MF Global Holdings Ltd. (MF) dropped more than 7 percent to $6.53 on Wednesday, after the brokerage, which has a market capitalization of $875 million, said it plans to raise as much as $150 million through a common stock offering. The New York-based firm said it will use some of the proceeds to pay fees and expenses that it incurs in connection with its proposed exchange offer for certain of its outstanding preferred and debt securities.
The company also said that it has granted the underwriters a 30-day option to purchase up to an additional $22.5 million in shares of its common stock. J.P. Morgan (JPM), Citi (C) and Deutsche Bank Securities (DB) are acting as joint book running managers for the offering.
MF declined $0.41, or 5.27%, to $7.19 rtq. at 1:44 E.T. in New York Stock Exchange trading.
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