Well, we knew it was coming based on NovaStar's (NFI) September 17, 2007 8-K -- the NYSE has moved to delist NovaStar's common and preferred shares from the Big Board. Due to the termination of its REIT status, NovaStar no longer meets the market capitalization requirements for listing on the NYSE. (The NYSE allows REITs to list under lower threshold requirements.)
NovaStar, for its part, put out a press release stating that it "intends to request a review of this determination and will explore alternative arrangements for the listing or quoting of its common and preferred stock."
The company's securities are expected to continue to trade on the NYSE pending review of the NYSE's determination.
The delisting was part of a one-two punch hitting the ailing subprime lender. Earlier in the day, S&P downgraded $306.6 million of RMBS in NovaStar's 2007 securitizations, which will require downward mark-to-market adjustments to the residual securities and possible additional margin calls. NovaStar shares tanked 12% in after-hours trading.