Replies to post #710612 on Fannie Mae-No Politics (FNMA)

[Pick _M_Low]

Hey, I just wanted to double check how you thought the order of things would happen.

1. Senior conversion
2. Warrants exercised
3. JPS conversion
4. Newco equity raise
5. Possibly new JPS to top off

I do not believe it is legal to convert the seniors or exercise the warrants before redeeming the JPS. The JPS also cannot convert without the JP shareholder's majority vote. We don't even know what those terms would look like.

[bradford86]

doubley confirmed

[LuLeVan]

How would this work technically? Senior conversion leads to a dilution by factor 170. Warrants exercise adds another factor of 5. Makes a total factor 850.

This would mean that commons would drop from around 85 cents now to 0.1 cents.

If - afterwards - the JPS are converted at par value of $25, each JPS holder would have to receive 25,000 commons per JPS.

Because 25,000 x 0.1 cents = $25.

Is this a realistic expectation?