Mr Cooper Group Inc (COOP)

[ron_66271]

The Numbers Don't Work, Yet!

Cost of Merger;
$1.2B + $1.9 = $3.1B

Funds for Merger;
$.585B from SBP + $1.7B from new Senior Notes = ~$2.285

~$.815B short.

WMIH needs to announce another source of funds fast.


Note 2—Financing Transaction
The aggregate amount of cash to be paid as merger consideration in the merger is approximately $1.2 billion. WMIH currently plans to fund the cash component of the merger consideration, the repayment of approximately $1.9 billion of outstanding senior unsecured notes assumed from Nationstar, and the payment of fees and expenses related to the merger through a combination of cash on hand and proceeds from the issuance of debt securities.

WMIH has obtained $2.75 billion in debt commitments from certain lenders to provide a senior unsecured term loan bridge facility (which we refer to as the “bridge facility”). The bridge facility is expected to have an initial maturity date that is the one-year anniversary of the closing date of the merger, and will be automatically converted into term loans in different tranches on the initial maturity date, with extended maturity dates ranging from 5 years to 10 years. The new debt is assumed to have an annual interest rate of 7%.

Page 196;
https://www.sec.gov/Archives/edgar/data/933136/000119312518180676/d574669d424b3.htm