SOURCE: The First Marblehead Corporation

April 25, 2007 08:25 ET

First Marblehead's Board of Directors Authorizes Repurchase of Up to 10 Million Shares

BOSTON, MA -- (MARKET WIRE) -- April 25, 2007 -- The First Marblehead Corporation (NYSE: FMD) today announced that its board of directors has authorized the repurchase of up to 10,000,000 shares of the Company's common stock from time to time in the open market or in privately negotiated transactions. The 10,000,000 shares now authorized for repurchase includes 3,393,300 shares that remain available for repurchase pursuant to a program approved by the board of directors on September 29, 2005.

The timing and amount of any share repurchases will be determined by a committee of the board of directors based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time, and it does not have a fixed expiration date. Any repurchased shares will be available for use in connection with the Company's stock plans and for other corporate purposes.

The repurchase program will be funded using the Company's working capital. As of December 31, 2006, the Company had cash, cash equivalents and investments available for the repurchase program totaling approximately $226 million.

The Company had 94,491,025 shares of common stock outstanding at the close of business on April 24, 2007. As of April 24, 2007, the Company had repurchased 4,106,700 shares pursuant to its prior repurchase program.

About The First Marblehead Corporation. First Marblehead, a leader in creating solutions for education finance, provides outsourcing services for private, non-governmental, education lending in the United States. The Company helps meet the growing demand for private education loans by providing national and regional financial institutions and educational institutions, as well as businesses and other enterprises, with an integrated suite of design, implementation and securitization services for student loan programs tailored to meet the needs of their respective customers, students, employees and members.

Statements in this press release regarding the stock repurchase program, including the intended use of any repurchased shares and the source of funding, and any other statements that are not purely historical, constitute forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's plans and expectations as of April 25, 2007. The inclusion of these forward-looking statements should not be regarded as a representation by us or any other person with regard to the repurchase of shares of the Company's common stock under the stock repurchase program. You are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors, which may cause actual experience or results to be materially different than those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include, among others, the discretion of the committee of the board of directors administering the repurchase plan, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, general economic conditions, the Company's cash flows from operations, and the other factors identified in the Company's most recent quarterly report on Form 10-Q filed with the SEC. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

© 2007 First Marblehead

Contact Information

  • Contact:
    At the Company
    Gary F. Santo Jr.
    VP, Investor Relations