Mr Cooper Group Inc fka COOP

[ron_66271]

No Ray, The EC Gave Class 19 a Better Deal.

The History;
Your Series R (P) received $76 a year interest payment per share. Plus a performance payment of around ~$225 at the end of the year.

Three Million shares of $1,000FV equals $3B. Our Series R Claim.

Series R is non-accumulated, but perpetual from performance payments. With BK; the interest payments die, but not the performance payments. The trusts are backed by insured performing ABS.

You will not receive any back interest payments.

Your Expectation;
$76 x 16y = $1,216
Now add in FV of $1,000
$1,216 + $1,000 = $2,216
2.216X FV.


Because of the Retained Earnings created by the EC from the February MOR of $20.78B.


My Expectation;
Using FJR of 1.95%;
$20.78B x .0195(1.95%) x 16y = $6.48B interest generated on RE.
$20.78 + $6.48 = $27.26B

That’s 2.726X FV per share.


I have two reasonable data points to calculate the area under the curve.
My current conservative performance payments accumulation is 2.2X of FV over the past 15 years.
Just Smile!

2.726X + 2.2X = 4.926X per share.


The EC covered past interest payments from the RE with a bonus.
Same for TPS and Series K, but no performance payments.

LIBOR adjustments for all three.



Ron