Where are you getting the 500m figure for convertible debt outstanding? Page 108 of the last annual report for WAC states that it was 242.5m as of December 31, 2016. I assume you meant the senior noteholders, which is a different group altogether.
Either way, this news seems bullish for WAC and I am interested to find out what the 10-year warrants the press release mentions are going to look like, as these could presumably impact the value to common shareholders here.