Tuesday, April 09, 2019 9:17:59 PM
the so beloved Moelis plan converts the JPS into commons at the IPO price. There is no doubt about it. Here comes the explanation:
Although Moelis writes - and you will love it - that you can do it differently, both calculations assume a conversion of 50% of all $33,2B JPS:
"Assumes pro forma preferred stock balance of $42 billion based on $25 billion of new issuance plus, for illustrative purposes only, $17 billion of outstanding legacy junior preferred stock (pro forma for an illustrative 50% equitization)".
Page 18
Now you can go through the numbers and see if they fit.
See example 1 on page 37:
IPO Price: $10.87
shares outstanding: 14,788
...results in market capitalization: $160,75B
equitized JPS: 10% "Relative Ownership"
50% JPS = $16.6B
$16.6B / $160.75B = 0.103 = 10%
fits!
On the same page it is written that "... the equitizing portion of junior preferred stock then receive approximately ... 1.5 billion shares":
1.5B X $10.87 = $16.31B
fits, too, due to rounding!
The same applies to example 2 on the next page. You are welcome to recalculate this.
You can also read the following in the Moelis plan on the same pages:
"At the IPO date, Treasury and the equitizing portion of junior preferred stock then receive approximately 0.6 billion and 1.5 billion shares, respectively, based on the IPO price and equitized balance then outstanding."
I could've saved myself the math.
GLTY
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM