Replies to post #119393 on Mr Cooper Group Inc fka COOP

[linda1]

Thanks for the link.


I have read 2 accounts of how much money TPG invested - 2 billion and 5 billion.


I think it was 2 billion and the 5 billion was invested by Institutional Investors.


The following link shows that after the conversion of preferred shares on June 30, 2008, TPG held a total of 229,714,285 common shares and 227,748,571 of those were converted from the preferred stock. The preferred stock had a $100,000 face value at conversion and there were 19,928 total converted at a $ 8.75 rate.


19,928 x $100,000 = $1,992,800,000



http://www.sec.gov/Archives/edgar/data/933136/000090342308000538/xslF345X03/advisorsvi-wamuf4_0628ex.xml



The amount of TPG's common shares - 227,748,571 - does not increase the O/S to 1.6 billion from 1 billion and if you look at the following excerpt from the link you provided you will see that Institutional Investors held more convertible preferred shares than TPG - 36,642.


If the 36,642 preferred shares had the same face value of $100,000 and were converted at the same rate of 8.75 -



36,642 x $100,000 = $ 3,664,200,000


$ 3,664,200,000 divided by $8.75 = 418,765,714 common shares



418,765,714 + 227,748,571 = 646,514,285 common shares converted from preferred shares of TPG and Institutional investors.


Add the 644,514,285 to just over 1 billion as you said brings the total to about 1.7 billion common shares O/S.


Am I right?



"Pursuant to the Investment Agreement, the TPG Investors acquired 822,857 shares of common stock, no par value, 19,928 shares of Series T Perpetual Contingent Convertible Non-Voting Preferred Stock (“Series T Preferred Stock”) and warrants to acquire 57,142,857 additional shares of common stock.

Pursuant to the Securities Purchase Agreements, the Institutional Investors acquired a total of 175,514,285 shares of common stock, 36,642 shares of Series S Perpetual Contingent Convertible Non-Voting Preferred Stock (“Series S Preferred Stock” and, together with the Series T Preferred Stock, “Preferred Stock”) and warrants to acquire 11,159,820 shares of common stock.

In this proxy statement, we refer to the warrants issued to the TPG Investors as “A Warrants” and the warrants issued to the Institutional Investors as “B Warrants” and to the two forms of warrants, collectively, as “Warrants”, and we refer to the transactions contemplated by the Investment Agreement and the Securities Purchase Agreements as the “Equity Investment Transaction.”