Replies to post #117500 on Mr Cooper Group Inc (COOP)

[ETO-Castle]

Preferred is considered debt, common is not...?

[nranger]

Does TGP have special protection for THEIR common shares that WE don't have?
Some probably already know about this post from 2008, but I just found this and it makes me wonder if TGP has a special arrangement where their commons shares will get paid even if ours get cancelled. I conclude this from the notion of a 'safety net' this article makes them appear to have. The common shares being cancelled is my main concern as well as the concern of others here.

I found this on the WAMU site. I apologize if its old news to everyone.

WAMU Deal Protects TPG InvestorsPosted by screwedbyabank on July 25th 2008
"Although this isn’t a new story, when Fort Worth, Texas based private equity firm “TPG”along with other “preferred” investors bought $7 billion of Washington Mutual stock at $8.75 per share at a time the stock was selling for $13. 15, my first thought was “what a hell of a deal”.
I was wrong, it’s better…. TPG’s partners aren’t either stupid or benevolent. They were able to wrangle a 33% discount on the investment of what was considered a risky bank on terms that almost can’t lose.
Among other things, the “look back” clause in the agreements allow if WaMu is sold for less than $8.75 a share or is forced to raise more than $500 million in equity, it must compensate TPG for the difference, according to filings with the U.S. Securities and Exchange Commission. Presumably, the compensation is more stock but it’s a “Head’s I win, Tails You Lose” deal.
TPG, also has warrants to buy 57.1 million shares at $10.06. So, before you shed a few tears for TPG who put up a wad of money for a sizeable sake in WaMu at $8.75 and is today selling for $3.84 remember, you don’t have a parachute…"
Although this isn’t a new story, when Fort Worth, Texas based private equity firm “TPG”along with other “preferred” investors bought $7 billion of Washington Mutual stock at $8.75 per share at a time the stock was selling for $13. 15, my first thought was “what a hell of a deal”.

http://www.thebanksucks.com/wamu-deal-protects-tpg-investors/

To me this seems to be a diminishing of the notion that we are somehow protected by the fact that since TGP owns so many common shares they therefore won't get burned ... therefore we won't get burned either.

[Ace45]

Prefered shares are guaranteed paid if their is equity in liquidation of assets commons are not promised any thing Prefered shares are a liability to the company