Convertible preferreds, 7.5% notes, 61.4 million warrants sold in deal
By Devika Patel
Knoxville, Tenn., Jan. 31 - WMI Holdings Corp. said it raised about $11 million in a private placement of convertible preferred stock with KKR Management Holdings LP and KKR Fund Holdings LP.
The preferreds are convertible into common shares at $1.10 per share.
KKR also received five-year warrants for about 61.4 million common shares. Of the warrants, 30.7 million are exercisable at $1.32, and 30.7 million are exercisable at $1.43. The strike prices are 46.99% and 42.57% discounts to the Jan. 29 closing share price of $2.50.
The investor will also buy $150 million of seven-year 7.5% PIK notes over the course of three years.
Proceeds from the notes will be used for future acquisitions.
The Seattle company provides financial services to consumers and small businesses.
| Issuer: | WMI Holdings Corp.
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| Issue: | Convertible preferred shares, PIK notes
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| Amount: | $161 million
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| Warrants: | For about 61.4 million shares
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| Warrant expiration: | Five years
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| Warrant strike prices: | $1.32, $1.43
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| Investors: | KKR Management Holdings LP and KKR Fund Holdings LP
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| Announcement date: | Jan. 31
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| Settlement date: | Jan. 30 (for preferreds)
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| Stock symbol: | OTCBB: WMIH
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| Stock price: | $2.49 at close Jan. 29
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| Market capitalization: | $542.96 million
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| Preferreds
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| Amount: | $11 million (approximate)
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| Conversion price: | $1.10
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| Notes
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| Amount: | $150 million
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| Maturity: | Seven years
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| Tenor: | Three years
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| Coupon: | 7.5%
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