Walter Investment Management Corp (WAC)

[Rockobongo1281]

Still in it!

Nothing much has changed since my last post about # of shares.

New info:
- Warrant A is exerciseable $20.63 (all this means is that if the stock is trading above $20.63 between now and Feb 9, 2028, you can get that stock for free from the company, and then sell it or hold it. It's like a call option. Of course you'll have to pay taxes, unless you elect cashless exercise).
- Warrant B is at $28.25

Amended Credit Facility with Credit Suisse - I don't like these terms, which call for 50% of company's excess cash to pay down the loan (see paragraph below the chart in item 1.01 of yesterday's 8-k). I also don't know if the loan balance has increased.

I think these guys are hinting at the fact that there will be an MSR sale, because of this (otherwise, why mention the date of 2/15/18?): "The Credit Agreement also requires that upon receipt by the Company or certain of its subsidiaries of the gross proceeds of any disposition of certain bulk MSR and related servicing advances by the Company or such subsidiaries prior to February 15, 2018, the Company shall make a prepayment of the Term Loans in an amount equal to 80% of such gross proceeds."

New Repo facility - also not sure whether the available repo balances are up.

New Fannie Mae Servicer advance financing facility - Looks like additional notes/bonds issued here. Doesn't look concerning to me.

New/updated Board of Directors

Pretty positive overall, in my opinion, aside from the 50% of cashflow going to pay down the Credit Suisse debt.