~ Well ? Because I Believe His or Anyone’s "ANSWER" Is Important ~
And ? ... since I am being asked a specific question ? regarding a specific security ? ... That I CHOSE' NOT to participate in ? ... I requested additional information from that individual, ...
I am not here as a participant to give, or promote any investment suggestions' ... or to be involved in any personal choice driven, “Banter” …
I dissect SIGNED documents and I Take into consideration, ALL OF THE MOVING PARTS of a Legal Process' ... the WaMu’ process has been intriguing
So, ... Back to the question ... ? ... I DO NOT' believe that many individuals actually ~ KNEW WHAT THEY WERE BUYING ~ When individual investors, THOUGHT that the purchase and / or holding, of a Class 16 PIERS Creditor Class Security' ... was a good idea' ...
... Here' ... I'll attempt to help, ... since I actually have read the relevant information' ... even though I CHOSE to only participate as an Estate Owner’ … WMB, WMIIC, and WMI
WHY Were the PIERS Securities Needed to be Capped' @ Plan 7's Reorganization' ?
WHAT was a PIERS Security' ?
WHO Originally Issued the PIERS Security's ?
WHAT Supported a PIERS Security ?
WHO' Ultimately OWNS the PIERS Security's Original Support ?
ARE the PIERS Securities Financially Completed by the WMI-LT ?
... NO' ...
A Tranche 4, Class 16 PIERS, Creditor Class Security', ... IS' directly associated with actual Ownership of the reorganized WMI, ... WMIH-Corp ...
PIERS were Capped' to define their specified value' at the reorganization' ... a PIERS Class Support' was / is / and continues to be' ... OWNED BY REORGANIZED WMI, = WMIH-Corp ...
In accordance with that certain Amended and Restated Declaration of Trust, dated as of April 30, 2001, WMI, as sponsor, established Washington Mutual Capital Trust 2001 (“WMCT 2001”) to issue Trust Preferred Income Equity Redeemable Securities SM (the “PIERS Units”) to investors.
WMCT 2001 is a statutory business trust created under the Delaware Business Trust Act and, as of the date hereof, continues to exist as an independent separate entity, duly formed and in good standing. WMI owns the common securities (the “PIERS Common Securities”) of such trust. As discussed below, WMI’s primary role in the transaction was to issue the Junior Subordinated Debentures (defined below), which comprised the sole assets of WMCT 2001. At issuance, and all times thereafter, these Junior Subordinated Debentures have, for all purposes, been treated as and reported as debt.
In the second quarter of 2001, WMCT 2001 issued (i) 23 million PIERS Units, having a total price of $1.15 billion, to investors, and (ii) 711,300 PIERS Common Securities, with a face value of approximately $35 million, to WMI. Each PIERS Unit consists of a preferred security (the “PIERS Preferred Security”) having a stated liquidation preference of $50.00 and a stated coupon of 5.375%, in addition to a detachable warrant to purchase 1.2081 shares of common stock of WMI at any time prior to the close of business on May 3, 2041. The PIERS Units were issued at an initial purchase price of $50.00, with $32.33 allocated to the PIERS Preferred Securities and the balance (or $17.67) attributable to “original issue discount” related to the value of the aforementioned warrant. The PIERS Preferred Securities were issued at a substantial discount and WMI made monthly accounting entries to accrete the discount and increase the balance over time. Thus, by maturity date of 2041, the debt would equal $1.15 billion
The PIERS Common Securities are junior in right of payment to the prior payment in full of the PIERS Preferred Securities. Pursuant to that certain Guarantee Agreement, dated as of April 30, 2001, the PIERS Preferred Securities issued by WMCT 2001 were guaranteed by WMI to the extent WMCT 2001 fails to satisfy its obligations to holders of the PIERS Preferred Securities.
The proceeds from the issuance of the PIERS Preferred Securities, together with the proceeds of the related issuance of PIERS Common Securities, were invested by WMCT 2001 in junior subordinated deferrable interest debentures issued by WMI (the “Junior Subordinated Debentures”), pursuant to that certain Indenture, dated as of April 30, 2001, as supplemented by that certain First Supplemental Indenture, dated as of April 30, 2001, each of which is between WMI and BNY Mellon as Indenture Trustee (the “Junior Subordinated Notes Indenture”). Pursuant to such investment, WMCT 2001 acquired approximately $1.185 billion of 5.375% Junior Subordinated Debentures, due in 2041. The Junior Subordinated Debentures are subordinated in right of payment to the prior payment in full of all senior indebtedness, as defined in the indenture governing the Junior Subordinated Debentures.
... WMCT 2001 is a statutory business trust created under the Delaware Business Trust Act ...
... The TRUSTS' ... ALL OF THEM, Have Continued to Perform' ...
