W2007 Grace Acquisition I, Inc. (fka WGCBP)

[Madmartigan]

The updated FAQ seems to imply a pref share value of ~$36/share. Per the FAQ, the Company owns a 3% interest in 106 hotels with ~$1.03 billion in debt obligations and wholly owns the equity interest in 20 hotels with ~$158 million in debt obligations. Per the CMBS issued on the 106 hotels, the value of those 106 hotels are appraised at $1.6 billion which would imply a value of ~$350 million on the other 20 per ARC's purchase price. This implies the Company owns equity interests worth ~$209 million against ~$78 million in accrued dividends and ~$146 million in liquidation preference. Accrueds have to be brought current to distribute to common, which would leave ~89 cents on the dollar for the liquidation preference of the prefs, or ~$22.50/share.

Does this make sense? Thoughts?