New York Community Bancorp Inc (NYCB)

[NewJerichoMan]

"In connection with the equity capital raise transaction, NYCB will sell and issue, in the aggregate, to the Investors shares of common stock of the Company at a price per share of $2.00 and a series of convertible preferred stock with a conversion price of $2.00, for an aggregate investment amount of $1.05 billion. In addition, investors will receive 60% warrant coverage to purchase non-voting, common-equivalent stock with an exercise price of $2.50 per share, a 25% premium to the price paid on common stock."

Without dealing with the (surely toxic) convertible preferred (1:1,000), 525 million shares of common stock will be issued in connection with the equity capital raise ($1.05B / $2 per share). Shares outstanding before today was 722M. Basically 1.25B shares soon to be outstanding. Mnuchin has about 42% here. Again, that's before dealing with the preferred and 60% warrant coverage, etc.

We can rest assured Mnuchin is going to make out like he did with Indy Mac back in the day. Current shareholders probably not so much.