Der Verkauf der Run off Notes würde 161 Mio bringen......
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Sale of Runoff Notes: $161 M. Value??
WMILT is going to sell the remaining runoff notes at the perfect time, right after the KKR - WMI financing agreement. In this agreement there is a issuance of 7,5 % subordinated notes to KKR.
What will be the value of this 13% runoff notes?
Taking into account that runoff notes are senior to the new to be issued 7,5% subordinated PIK notes, they should yield at a maximum of 7,5 % or less.
That's why I come to a minimum proceeds of 161 million for the remaining runoff notes hold by WMILT.
Original principal amount remaining is $ 93M. at 13 % originates an annual interest of $ 12,09 M., if we take that figure as a 7,5 % maximum yield this brings a nominal value of $ 161,2 M.
IMO the proceeds from the runoff notes will originate a minimum value of $ 161 M, so this is good news for WMILT beneficiaries.
I also believe we will see KKR bidding on these notes.
Mark this post.
GLTA and Merry Christmas to All!!