Replies to post #587003 on Mr Cooper Group Inc (COOP)

[lodas]

goodie...ya gotta remember Wmih only got 75 million in cash, and 125million line of credit if you recall...that is not enough to get a company going with such a small capital structure.. when KKR came in with a preferred offering of 600mil, things then changed with the lending agencies...its sort of like you are out of money, but you got a brand new Ferrari in the garage at home, and ask the bank for a loan on the Ferrari... yeah, its worth a fortune to you , but not the bank..I doubt you would not even get one third of its value in a loan...its the same with real estate, your home has value, but the banks will not come up to its value on a loan.. they will discount it....Wmih needs a suitor for quick money to restructure the company with needed cash immediately..and thats where KKR came in...when you pawn your Rollex, they give you very little value for it.. if you don't pay the pawn loan off, don't you cede all the intrinsic value to the pawnbroker?.. same with wmih they were cash poor and needy assistance.. KKR came at the right time, so they benefitted at wmih expense....besides, they got stock, which was discounted by a 1/12 RS just like we did....we are here now because of KKR, and without them, where would we be now?....something to ponder.... Lodas