Replies to post #536348 on Fannie Mae-No Politics (FNMA)

[kthomp19]

a higher share price would result in JPS being paid off quicker than the 15-20 years I orginally said.

There are (at least) two reasons that this sentence doesn't make any sense.

1) The juniors are equity, not debt. They cannot be "paid off". And redeeming them would just drain FnF of capital at a time they need to be rebuilding it.
2) A higher share offering price only results in a lower equity stake for the new buyers. It doesn't help with the recap at all. The government will be seeking a set amount of money for the recap, and the demands of the new buyers (and Treasury if it exercises the warrants) will determine the price. These new buyers will want it as low as possible.

we could issue more shares at 200 and pay off JPS debt.

The juniors are not debt, they are equity.

number 3 works for me.

What "works for you" means absolutely nothing. You need to focus on what will happen, not what you think should happen. That means avoiding logical arguments that start with a high common share price and trying to back into the details later.