Penson Worldwide Inc. said (PNSN) Chief Financial Officer Kevin McAleer will retire at month's end, and the brokerage and clearing firm named TD Ameritrade Holding Corp. (AMTD) executive Michael Chochon as his successor.
Penson also said entities holding more than a majority of Penson's $281 million parent company long-term funded debt agreed to a restructuring support agreement that includes an exchange offer for new debt and equities.
Chief Executive and Founder Philip A. Pendergraft said the debt-exchange plan will eliminate approximately $176 million of debt and $30 million of annual interest expense, increase equity at its parent company, and potentially realize a significant one-time gain. Combined with firm's cost-cutting efforts, Pendergraft said, "our plan is to get Penson to be as close as possible to break even on a cash basis in the second half of 2012."
Chochon has more than 13 years of experience as a financial officer in the brokerage industry, most recently at TD Ameritrade, where he served in roles including managing director of trading and risk.
Penson, which posted its seventh consecutive quarterly loss on Tuesday, has been trying to improve its balance sheet and bottom line through asset sales and streamlining its operations.
The company said following the completion of the debt exchange it would consider a reverse stock split.
Shares closed Tuesday at $1.27, up 1.6%, and were halted in recent after-hours trading. The stock is down 79% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com