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Troy Racki

 
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  • Dissecting The Washington Mutual KKR Deal [View article]
    I think you moved a decimal. The $600M has a mandatory conversion built in to become common stock at $1.75 to $2.25/share. This works out to 266,666,667 to 342,857,143 new shares. Hence you see share price currently between $1.75 to $2.25.
    Dec 23, 2014. 10:19 PM | Likes Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    I have not heard/read about this $3.5B so I can't comment on it. The only things I consider building an analysis on is what is available thru the SEC or formerly KCCLLC pre-emergence. Generally message boards are rife with misinformation and shouting matches, time not well spent.

    If such an amount does exist it likely belongs to the liquidating trust and therefore would not go to WMIH. In the off chance that the $3.5B is in reference to the money that WMI had on deposit in WMB, that amount was settled in the GSA and went towards paying off senior creditors in WMI so it's gone.

    My apologies for not being more help on this. I don't know anything more than anyone else who reads the SEC filings. If I did know more I would have insider knowledge and therefore could not write for Seeking Alpha.
    Dec 23, 2014. 10:11 PM | 4 Likes Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    I have an article in the works but it is on delay due to the due diligence involved, the holiday season, and the sheer length of writing and editing. This will be my longest article written on SA to date. I will try to get it out as soon as possible but am not willing to sacrifice quality for speed. It should be on SA by the 29th at the latest.

    Currently there are no real fundamentals to go by. That should change once the company makes its first purchase. Book value is the only thing I can come up with. After the serious dilution I have a value of $4.08. I know price is all everyone really wants to know so I posted it earlier before the market opened this morning.
    Dec 23, 2014. 01:36 AM | 1 Like Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    Revised Six Month Price Target: $4.08.

    Article to come but delayed due to extensive due diligence.
    Dec 22, 2014. 04:30 AM | Likes Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    WMIH appears that it is going to go into banking again. They are adding two board members from Capmark Financial (CPMK). Either they are going to buy Capmark or Capmark is buying part of the $200M of preferred stock that is listed under "KKR affiliates".

    Company Profile & Key Executives for CPMK (From Bloomberg)

    Capmark Financial Group, Inc. owns and manages a portfolio of commercial real estate properties. Through a subsidiary bank, the Company offers loans secured by commercial and multifamily real estate properties throughout the United States, and trust services to commercial real estate mortgage servicers.

    Note that Eugene I Davis "Gene" is the CEO of CPMK, the same Davis that was more forthright with information than Willingham at the last few shareholder meetings.

    CPMK might have some real estate on its books that it wants to sell and WMIH's NOLs will make it so they can liquidate properties without having to pay any corporate taxes.

    As far as the warrants, the only warrants WMIH has out right now belong to KKR and are not public.
    Dec 21, 2014. 03:56 PM | Likes Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    While every effort will be made to get a report to market before the opening bell on Monday, all SA articles don't go live until editorial approval. At this time I'm still doing the DD because there is a lot to angles cover in developing a new price target.
    Dec 21, 2014. 03:47 PM | Likes Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    After further reading, WMIH will be terminating both the $125M AOC credit facility and the $150M PIK notes with KKR. These were both @7% whereas the Citi financing is 3%. Lower yield signals lower risk and also less interest expense for WMIH.

    WMIH is saying that they don't need this expensive financing when they can get money elsewhere for less.
    Dec 19, 2014. 10:21 PM | Likes Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    I haven't had a chance yet to read and digest the documentation other than at first glance I see that they are terminating the $150 PIK Notes from KKR when the company reincorporates from Washington to Delaware. Reincorporation will take place within 180 days. As soon as the company makes its first M&A the preferred stock will convert to common.

    I'll be doing the due diligence this weekend and placing a report with SA on Sunday evening. It will be up to SA editors if it makes it online before the opening bell on Monday. I'll have a new price target at that time.
    Dec 19, 2014. 09:54 PM | 1 Like Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    Well, /it/ (finally) happened. Congratulations to everyone who held out for the year's wait.

    It's not the M&A but its... "approximately $568.7 million, to explore and fund, in whole or in part, acquisitions, whether completed or not, including reasonable attorney fees and expenses, accounting expenses, due diligence and financial advisor fees and expenses."

    So, capital to start making purchases. Citigroup and KKR are now in the wheelhouse. You can bet your bottom dollar they are going to do something with that money. Only 3% yield signals that Citi sees this as fairly low risk.

    WMIH will have approximately $660M available, $+125M from the AOC, +$150M from KKR. So the total "buying power" of WMIH moves up to $939M.
    Dec 19, 2014. 04:49 PM | Likes Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    There are no updates to provide as the company has not released any significant information since this article was written. There is no change in the NOL valuation at this time.
    Nov 13, 2014. 11:00 PM | Likes Like |Link to Comment
  • WaMu Seesaws On M&A Speculation [View article]
    Thanks for all of your hard work Joyce in getting the equity committee formed. If it was not for your efforts equity may have gotten nothing at all out of the reorganization.
    Mar 24, 2014. 08:19 PM | 7 Likes Like |Link to Comment
  • 4 Stocks That Should Outperform The Market [View article]
    Nice to see someone else covering WMIH after being the only writer for years. I wonder what KKR has in store for WMIH in 2014?
    Dec 30, 2013. 10:17 PM | 2 Likes Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    WMIH, when it concludes its first merger, will likely acquire the other company's name, symbol, and exchange. For example, SBC took over AT&T but kept the AT&T name and symbol. I doubt WMIH wants to keep a name that is tied to FDIC seizure. With the recent KKR Financial buy out by KKR, I wonder if WMIH is going to be vacuumed up completely by KKR, just not 26%.

    Time will tell.
    Dec 23, 2013. 06:23 PM | 3 Likes Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    Given your strong opinion, I would encourage you to write a piece for Seeking Alpha on WMIH along with any price targets you may have.
    Dec 20, 2013. 02:52 PM | 1 Like Like |Link to Comment
  • Dissecting The Washington Mutual KKR Deal [View article]
    If the NOLs are valued at $1.10/share, why would KKR pay full value for them? They would pay less than $1.10. So they must value them more than $1.10. Their warrants are a $1.38/share (blended) strike price. That indicates again, more value to the NOLs than $1.38 because who would want a strike at company's full value? I don't see KKR getting involved if they can't at least double their money. So far they almost have.
    Dec 18, 2013. 11:48 PM | 3 Likes Like |Link to Comment
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