Mr Cooper Group Inc (COOP)

[JusticeWillWin]

Recap of the audio file from the SHM

Archived audio can be found at:

https://pgi.webcasts.com/viewer/event.jsp?ei=1102885

That's not a transscript, just a recap:

Minute:

22:10: branch doesn't matter that much, but other criteria are important

27:50: they plan to use at least the $600 mln., probably more than that. another round of funding is needed, probably through rights offering which they consider the best possibility

31:30: relationship with KKR is very good, they have an excellent pipeline, and there is regular exchange with KKR, no conflict of interest. KKR has contact to many sellers that are not suitable for the KKR fund, but for WMIH

37:45: they prefer buying a privat company, not a public company. he repeats IT WILL be a private company, so I think they have a target already and they make good progress

39:50: he is sure they will finalize the deal definitely within the 3 year redemption period of the series B preferreds, but he expects it to close (rather sooner than later) within 12 months

44:00: the $11 million for the failed deal last summer was for 3rd party professionals because they were sure they will have the winning bid. there is no protection against that it could happen again, often there are no reimbursement provisions if the deal fails

46:11: they look at more than one target at the same time, but if they pick one, only this one will be pursued, as is usual

49:30: the failed deal was so expensive because they were absolutely sure they will win the bid, but they lost against expectations. they have been outbid in the last second, and it was not necessarily the money, there were other "factors"
the $11 million used were part of the initial $75 million, the $600 from the series B remained untouched! the $75 were placed in WMIH exactly for that reason (acquisition costs)!
the goal is to achieve one or multiple transactions that will sum up to a multi-billion transaction!
the $600 million are important, but more important is the group of investors they come from, because the BOD thinks this group can provide more capital to stem the next round of financing (through rights offering or debt I think)
Again, the $600 million will only be a part of the deal
They cannot name the failed deal because of an NDA (duration of 24 months). next year they could tell us the name of the company

I remain very optimistic and will buy more month by month, but JMHO, no investment advice!!!