Reorganized WAMU Calculator Formula
This formula is based on MrSesameSeed's interpretation of POR 7 available at
http://www.kccllc.net/documents/0812229/0812229111212000000000003.pdf
. Since the calculator was originally made, the
revised proposed plan
and
confirmed plan
have been released. I have not had time to update the page references using these new documents, but I have made my best effort to ensure the changes in them are reflected in the calculations.
Assumptions
There are
1,704,958,913
WAMUQ shares available. (POR 7 PDF Page 24)
There are
20,000,000
WAMKQ shares available with a par value of
$35,000,000
each for a total par value of
$500,000,000
. (Common knowledge)
There are
3,000,000
WAMPQ shares available with a par value of
$1,000
each for a total par value of
$3,000,000,000
. (Common knowledge)
TPS (a.k.a REIT Series) has a par value of
$4,000,000,000
and is currently classed as a preferred equity. TPS holders may choose to reject this POR (and forfeit any distribution to them) and rely on their pending appeal for a greater recovery. (POR 7 PDF Page 52)
There are to be
200,000,000
common equity shares in the new company. (POR 7 PDF Page 39)
Noteholders have the option to purchase up to
5%
of the
200,000,000
shares (which works out to
10,000,000
shares) if they choose to do so. (Revised Proposed Plan PDF Page 148)
Preferred and common equity will split the new company shares after the noteholder shares have been subtracted from the
200,000,000
. (POR 7 PDF Pages 24 and 73)
Preferred equity (WAMKQ, WAMPQ, and TPS) will own 75 % of the available common shares in the new company. (POR 7 PDF Page 73)
Common equity (WAMUQ) will own the remaining 25 % of the shares in the new company. (POR 7 PDF Page 75)
DIMEQ was determined to be common equity and will share/dilute WAMUQ's
25%
ownership. (POR 7 PDF Pages 74 and 75)
Some claims were subordinated to the level of common equity interests. The determination of their pro-rata shares will be found by dividing the value of their claims (which you estimated to be
$500,000,000
) by the share price at the close of business the day before the petition date (which is $1.69). This amount of shares will be added the the common's
1,704,958,913
shares in order to determine their ownership % of the amount available to commons. (POR 7 PDF Pages 74 and 75)
Calculation Explanation
You anticipate noteholders will purchase
100.0000%
of the
10,000,000
common shares in the new company available to them (which works out to
10,000,000
shares). Subtracting this from the original
200,000,000
shares leaves
190,000,000
common shares in the new company available for preferred and common equity to share.
You anticipate
0.0000%
of WAMKQ and
0.0000%
of WAMPQ will not grant releases (and forfeit their distribution). Taking this into account, the total WAMKQ&WAMPQ preferred equity is
$3,500,000,000
(
$500,000,000
for WAMKQ +
$3,000,000,000
for WAMPQ). You anticipate
0.0000%
of the TPS holders not grant releases (and forgeit their distribution). This makes the total value of all preferred equity
$7,500,000,000
(
$3,500,000,000
for WAMKQ&WAMPQ +
$4,000,000,000
for TPS).
Therefore, WAMKQ&WAMPQ preferred equity own
46.6667%
of the total preferred equity (
$3,500,000,000
/
$7,500,000,000
).
Because preferred equity is to receive
75%
of the
190,000,000
shares available, that leaves preferred equity with
142,500,000
common shares in the new company to share.
With WAMKQ&WAMPQ preferred equity owning
46.6667%
of all preferred equity, that leaves WAMKQ&WAMPQ preferred equity with
66,500,000
common shares in the new company to share.
If we split the WAMKQ&WAMPQ ownership into their individual classes, we find that WAMKQ owns
14.2857%
(
$500,000,000
/
$3,500,000,000
) and WAMPQ owns
85.7143%
(
$3,000,000,000
/
$3,500,000,000
) of the WAMKQ&WAMPQ preferred equity.
Therefore WAMKQ owners will share
14.2857%
of the
66,500,000
common shares in the new company (which works out to
9,500,000
shares). Dividing by the number of WAMKQ shares (which have been reduced by
0.0000%
because of those not granting releases) shows us that each WAMKQ share would receive
0.475000
common shares in the new company.
Likewise, WAMPQ owners will share
85.7143%
of the
66,500,000
common shares in the new company (which works out to
57,000,000
shares). Dividing by the number of WAMPQ shares (which have been reduced by
0.0000%
because of those not granting releases) shows us that each WAMPQ share would receive
19.000000
common shares in the new company.
Because common equity will receive
25%
of the
190,000,000
shares available, that leaves common equity with
47,500,000
common shares in the new company to share.
You anticipate DIMEQ will own
8.7700%
of those shares (which works out to
4,165,750
shares).
Subtracting the shares owned by DIMEQ leaves
43,334,250
common equity shares in the new company for WAMUQ owners (and those holders of claims subordinated to common equity interests) to share. Dividing by
1,725,668,972
shares (which is found by taking the number of WAMUQ shares (which have been reduced by
0.0000%
because of those not granting releases) and adding the subordinated claim shares) shows us that each WAMUQ share would receive
0.025112
common shares in the new company.
The estimated value per common share of the new company is simply found by dividing your estimated value of the reorganized company by the
200,000,000
shares available.
The estimated value in the new company per each current WAMU security is simply found by multiplying the estimated value per common share in the new company by the number of common shares in the new company that we just determined the WAMU security would received.
Conclusions
Each WAMUQ share would receive
0.025112
common shares in the new company.
Each WAMKQ share would receive
0.475000
common shares in the new company.
Each WAMPQ share would receive
19.000000
common shares in the new company.