3...2..1...Ignition
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Distro,
I believe, it is more like that:
SBP - 600MM/2.25 = 267MM
SAP - 1MM /XXX = 10MM
Warrants - 2 x30.5MM = 61MM
Currently 202MM
Total 540MM (for now or the next 3 years !?)
AZ,
Since this is the speculative topic, I would throw this out there:
Would like to see them do the swap with preferred convertible in 3 years above certain price.
Uncle Bo
So AZ,
If I read you correctly, WMILT will in essence distribute WMIH newly issued shares to the escrows. Is this right ? Sort of, similar of what they did with the RONs and the PIERS.
Uncle Bo
I don't have any ballots as of yet
Large,
Can you elaborate on how the assets are coming back, because Rosen has court dates scheduled well into 2016. What would be the urgency that the FDIC has to return anything. I thought they would drag this as long as possible.
Uncle Bo
Drrugby,
Thank you for the post, yes this appears to be the new or the forgotten old attactive business. If you look at the Bluestem brands now acquired by Capmark it is part retail operation / part subpirme consumer loans...I don't really know if WMIH is targeting them ?
Uncle Bo
Nurse,
You can transfer shares from a traditional IRA to a Roth, a.k.a. conversion. The broker would make a journal entry and you will see it in both acounts. Then they will issue a form for the conversion for tax purposes, the value would be calculated based on the stock price when the conversion occured and the number of shares converted. I have done this already, not with Fidelty though.
On a different note, Fidelity refused to convert markers for me as well. I have heard that other brokers have done it, but I guess with Fidelity we are out of luck so I dropped it, since it is not that much for me there anyway.
Hope this helps.
Uncle Bo
Bk,
Thank you for the reminder and the post. I have a question on the third screen print you posted (the notes page 136). So JPM wrote down 38.7B net assets by 31B, correct ? This is about 80% loss or so they were projecting on 9/25/2008. However, these days we are learning that the actual losses from similar loans are more like an average of 59%. Is it fair to say that they embellished the projected loss "a bit". Therefore the negative good will which appears to be ~10B.
Also, if you know or have seen information - do you know what are those FDIC related expenses for the past six years which JPM has been paying and have been disclosed only as such "FDIC related expense" ? These amount to quite a sum running at a rate of 1B and more every year ?
Appreciate your input.
Uncle Bo
Justice,
Theoretically speaking, you are correct on the WAMPQs = face = 1000 at 10B. However,the WAMUQs would be higher, since only ~1.1B shares released - may be 2.30-ish...
Don,
After doing some reading on capmark, I have a feel that Gene Davis/KKR may be consolidating positions to make them more tax efficient - WMIH/Capmark.
What I like about Capmark:
1. They used to be or still are in the mortgage management business.
2. The bluestem brands have 1B in sales and fast growing! This is not just some online retail operation. This is also financing operation, they are lending to folks who have been denied credit by the too big to fail...not only that it is a risk free operation, they sell the receivables.
Now, if you think about it - Olson kept saying that the company will diversify its platform. If WMIH was to acquire Capmark ( and pay off their debt used for the purchase of Bluestem brands at some point). You have a stand up fast growing online retail and financing operation - not only that, but in essence tax free for a while. What is not to like ? High growth rate typically is rewarded with higher multiples PE.
On the other hand, nothing prevents the WMILT to hire this newly created company to manage mortgages if returned. The platform is there already and so are the experienced executives. Oh, yes we also have a reinsurance company which may come in handy and if they decide can start writing new business. Let's not forget that the insurance commissioner of Hawaii granted to the reinsurance company the permit to form a segregated cell. I know, the pursuit of that was abandoned because of the original credit facility 125MM, but it might be pursued in the future.
Certainly, interesting times - Very soon we will know a lot more. I am ready for a take off
GLTA
Uncle Bo
Justice,
I would think that the latest document supersedes the previous or...or they will announce an acquisition next week and then it becomes a moot point.
But, yes a head-scratcher...
Uncle Bo
Shify,
No they don't, read pages 2&3, they already have ~57% of the vote:
https://www.sec.gov/Archives/edgar/data/933136/000119312515070176/d838601dpre14a.htm
Justice,
Yes, they are all in agreement. The same document pages 2-3. They have already agreed to vote "for" the move to DE...preferred(A&B) has 57% of the vote from the ~469M float.
Uncle Bo
Pyramid,
Thank you for the post. Great news, we hope. Let's read the filings as they come.
Uncle Bo
From the WMIH 8K:
(xx) “Qualified Acquisition” means an Acquisition that, taken together with prior Acquisitions (if any), collectively utilize aggregate net proceeds of the Offering in the amount of
$450.0 million.
Right now cpmk market cap is around 480MM
Looking forward to 24.00 - One Day...
I believe he told us in person in THJMW's court - 1MM Qs...
Vodka,
Not a good time to be out of WMIH - IMVHO !!!
The deal is done, the announcement could come any day now, the long wait is over. I personally would not want to be caught flat footed on a take off...
Granted, riding the volatility is not easy.
Uncle Bo
MAXM on the ASK 1 share @ $200.
We all wish...
Uncle Bo
Upper,
I hear you, however, the two of the guys who founded KKR originally still run the company. Look them up, their legacy matters...to them that is, besides money.
In essesnse, we gave up half of the NOL value to them, since we did not have sufficient capital. In exchange they put in their own equity in WMIH and also their good name. Meaning if someone was to purchase bonds(debt) in conjuction with WMIH merger they would do it becasue KKR is in charge, they have a reasonably good track record for seeing through even the most challenging M/A activities. Are they perfect, of course not - this is where I see the risk, not in their ill intentions - IMHO.
Uncle Bo
Thanks for posting BK,
I like this part the most:
JB3136,
Better yet Feb 2016 - LOL! Endless supply of milk for Rosen.
http://www.kccllc.net/wamu/document/0812229150105000000000001
Justice,
Thank you for the article.
Uncle Bo
bk,
Your ONLY concern is a valid one IMHO and I do share it. It is called a tender offer and it is wirtten in the corporate documents.
After the dilution they could easily increase their share holdings with less than 50% and retail can be absorbed. You know how these things go. Say if 80% of the other shareholders or 90% agree with the offer we are done.
I do hope that they will let us stay on the bus, but if they do not I do hope that the offer would be reasonable. My guestimation based on a 20% retail holdings within the currentl float is $10 tops. Most likely they would offer far less than that.
Uncle Bo
The crooked MMs at work...
I had an order at 2.17 and it stayed open all day - never filled, guess the bid is offered to preferred clients
Uncle Bo
I hope Tepper is selling and moving on...
Drrugby,
Thanks for the post, my favorite part on page 25:
150,000 shares on the bid...makes you wonder ?
Nagoya1,
Thank you for posting this, I asked the question about the voting % twice, but it did not stick. They corrected the filing...
Uncle Bo
Blue,
KKR has agreed not to purchase the common stock tied to the warrants until March 2015.
I was reading through the filing and there is a schedule I which describes that KKR gets to purchase 400,000 shares of the preferred and citi 200,000. But then when you read the voting agreement it is somewhat confusing...it goes like this:
KKR prefferred A 1MM the intial agreement)converts to 10.5 MM common
KKR preffrred B 200,000 converts to 98.5MM commons
warrants convert to 61MM common
All equals to 29.7% voting power (160MM shares)
My question is what happens to the other 200,000 preferred B which KKR is buying. I assume, that this gets distributed to their "other" investors directly ?!
Any input on this one is helpful, these are potentially votes. Also the dilution reduces the retail influence big time. let's say that retail had 20% of the float previously (40MM). Now with the capital raise and the new float this goes down to 7.4% (40/540MM).
Uncle Bo
Next payment due date should be Feb 1st, 2015. Don't know if Rosie will pull out the entire amount out of the hat. For sure he will set some money aside for lunches and those long 20 hour working dayzzzzz...
By Peg Brickley Updated Dec. 23, 2014 4:55 p.m. ET
A bankruptcy judge Tuesday tied up a remaining loose end from the 2008 collapse of Washington Mutual Bank , endorsing a $37 million settlement of the company’s claims against its former leaders.
Judge Mary Walrath signed off on the settlement at a hearing in the U.S. Bankruptcy Court in Wilmington, Del., where the failed thrift’s corporate parent, Washington Mutual Inc., took refuge in 2008.
Regulators seized the troubled subprime lender and sold it to J.P. Morgan Chase & Co.
Once a savings and loan, Washington Mutual became an enthusiastic participant in the home loan boom, creating what a Senate panel later called a “time bomb” doomed to blow up in investors’ faces.
The settlement approved Tuesday ends some of the litigation over who was to blame for Washington Mutual’s failure including legal fights with insurance companies that balked at paying.
Washington Mutual’s trustees accused the company’s leaders of neglecting their duties to look out for the parent company.
For example, they sought to recover $500 million of parent company funds that were diverted to prop up the finances of the thrift. The thrift, and the $500 million, fell into the hands of regulators.
Kerry Killinger, who was ousted from the chief executive spot at Washington Mutual not long before the thrift was seized, gets $7 million or more from the settlement, for agreeing to drop claims he filed against the company. Other former Washington Mutual leaders will also collect something for unpaid directors’ fees or company expenses under the pact.
None of the parties involved admitted to wrongdoing, but those in charge of rounding up money for creditors say it is time to stop the litigation in state and bankruptcy courts and to engage in a compromise all around.
Among other things, the settlement could free up about $18 million that has been held in reserve in the event the bankrupt company was required to cover the defense fees and costs of sued executives.
An attorney for Mr. Killinger couldn’t immediately be reached to comment Tuesday on the settlement, which was filed with the court earlier this month.
Lawyers for the trust cited the “inherent uncertainty, delay, and expense connected with litigation,” estimating it would take four years and cost $10 million to fight the cases through the courts.
Washington Mutual’s trustees were facing the likelihood that the company’s former leaders would raise a vigorous defense, court papers say. The executives could invoke the protection of Delaware’s business judgment rule, which shields executives from being second-guessed by courts.
Additionally, Washington Mutual’s leaders were likely to argue they were acting on the instruction of federal regulators when they propped up the ailing thrift, according to arguments advanced to support the settlement.
The deal is the latest in a series of settlements that have ended many of the fights over Washington Mutual’s demise, at least those being fought in bankruptcy court. The Chapter 11 plan that wrapped up the bulk of the Washington Mutual’s affairs had as its backbone a deal to divide billions of dollars in tax refunds among J.P. Morgan, the parent company and the receivership that is taking care of the thrift’s final affairs.
The $37 million for the settlement is coming from insurance companies, which are paying on behalf of the sued executives. The liquidating trust set up under Washington Mutual’s Chapter 11 plan will make the settlement payments to executives, court papers say.
Trustees have been distributing funds to creditors since 2012, when the parent company’s $7 billion Chapter 11 plan was approved.
Write to Peg Brickley at peg.brickley@wsj.com
Who is buying the rest of the 600,000 series B ?
I was going through the filing and could not see who is buying the rest of the preferred stock. 200,000 is being purchased by KKR which can convert to 98MM, which together with their prior warrants give them ~30% voting powwer or 160MM shares.
Who is buying the other 400,000 preferred shares - Citi ?
Uncle Bo
Then when the next payment is made to PIERS, all of the outstanding claims due to creditors drop below 50MM and the WMILT TAB becomes controlled by equity. If that would matter...while winding down, say who makes the decision if/when assets are returned to the trust.
t1215s,
Thank you for a good post, for those interested :
Investor Call - December 23, 2014
Capmark will host a conference call on December 23, 2014 at 5:00 p.m. Eastern Time to discuss Bluestem Brands, Inc.'s 13- and 39-week periods ended October 31, 2014 financial results.
Conference dial in: (877) 857-6144 or (719) 325-4768 (International)
Very interesting story - a rapidly growing online retailer coupled with credit for the consumer...the banks can continue not to lend...it is good for Bluestem Brands business.
A reasonable question could be why would Centerbridge want to sell, not sure, but who knows at the end of the day.
Uncle Bo
Clawmann,
I completely agree with you, as the filings point out this is when the actual dilution will occur and the market will be able to determine what is a fair price based on the earnings of the acquired entity.
Uncle Bo
IMHO, this is normal - did we forget that WMIH will "cross" outside of the 3 year testing period on Jan 2nd as Blue pointed out. We can watch the volume then perhaps.
Justice,
Thank you for the article, government help comes at a very steep price, isn't it ?
Uncle Bo