Whats with this group? No one talking about the Alice theory? Seems like they are concieving a better deal for our money than suing ourseves. You bought WMIH because you believed the net worth was 100 bil. Don't you still think its worth 1 trillion by now. Don't shoot yourself in the foot. Stay with COOP it is the tell. Just ask AZ about the new monster capitalation. Aren't they saying the same thing. Sure wish they liked each other or maybe they do?? I thought this up all by myself :) for those that care.
Do not know yet what they have planned for U's ????
Why do you think they are doing this? They need and want us on board. IMO
"I do not know how Alice got this but it sounds credible IMO but.......
Quote CSNY/Bop/Alice - Another thing I alluded to recently is the issue of capitalization.
The SNs intended that Class 16 participants have (a) minimum threshold and (b) contribute additional capital. I believe (a) won't be relevant because, among other reasons, already wealthy clients at elite banks like Brown Brothers Harriman whose average P holder has 900 Ps would not be able to participate. That's why holdings will be aggregated at the bank level so on one ticket BBH can sponsor the $48MM in Ps its clients hold. (Of course, BBH will charge some kind of fee for the accommodation.) Again, 10 to 11 of the Underwriters have holdings that would render them ineligible but for the fact that they're invested as a syndicate. BBH would argue that its clients should also be able to aggregate, and the Big Three would also advocate for this.
My surmise is each TPS, P, and K will have to make an additional contribution regardless of the magnitude of the investor's total holdings. I suspect it will be the maximum allowed under Reg T, which allows borrowing up to 50%. That means each investor would borrow 100% above his holdings. I looked at the margin rates and at the high end they're around 3.5%. If the banks borrow at less than 1% then they make a nice 250% spread. For example, at $600B each TPS or P is worth approx. $60K. The company could demand $120k which means 50% of the purchase price would be borrowed. If so, even David Tepper would have to borrow. The annual interest would be paid from the coupon the company pays, probably quarterly.
This would be good for the company because that leverage would not be on its balance sheet."
The Most Royal Dude
Lets Go Fishing
AI
