Stock Monitor: Nationstar Mortgage Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 15, 2018 / Active-Investors.com has just released a free research report on WMIH Corp. (NASDAQ: WMIH). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=WMIH as the Company's latest news hit the wire. WMIH and Nationstar Mortgage Holdings Inc. (NYSE: NSM) ("Nationstar") along with the latter Company's flagship brand Mr. Cooper® announced on February 13, 2018, that they have signed a merger agreement. The merger has been approved by the Board of Directors of both companies and will allow WMIH to expand into the housing finance market. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, WMIH Corp. and Nationstar Mortgage Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Commenting on the acquisition Bill Gallagher, CEO of WMIH, said:
"The combined Company is expected to benefit from WMIH's platform and financial attributes, which are expected to enhance free cash flow available to support business growth and be accretive to shareholders' equity."
Jay Bray, Chairman and CEO of Nationstar, added:
"We expect this merger to create value for our shareholders in both the near and long-term, including immediate accretion on a cash EPS basis and a cash premium for those of our stockholders who elect to receive the cash merger consideration."
Terms of the merger
WMIH has offered to pay Nationstar's shareholders $18 in cash, or 12.7793 WMIH's shares, for each Nationstar's share they hold with that condition that a minimum of 32% Nationstar's shareholders opt for WMIH's shares. WMIH's deal with Nationstar's shareholders translates to approximately $1.2 billion payable in cash and approximately $702 million in WMIH's shares. On completing the merger, WMIH plans to refinance Nationstar's existing debt of approximately $1.9 billion. WMIH has already received financial commitments for $2.75 billion for completing the acquisition. An entity owned by investment funds managed by an affiliate of Fortress Investment Group LLC is the majority shareholder of Nationstar with approximately 68% stake. They have agreed to support the merger and opted to receive cash for the approximately 34 million shares owned by them, subject to proration. WMIH's majority shareholder KKR Capital Markets LLC which owns 24% stake has also agreed to support the merger.
The deal is expected to be completed in H2 2018 subject to receiving shareholders and regulatory approvals and fulfilment of other closing conditions.
Once the deal is completed, WMIH's shareholders will own approximately 64% stake in the merged entity and remaining 36% stake will be owned by Nationstar's shareholders. As per the agreement, once the deal is closed, Nationstar's business will continue to be operated under the name of Nationstar Mortgage and be based in Dallas, Texas. The business of Nationstar will continue to be managed by Nationstar's employees and management team even after they become a part of the merged entity. Initially Nationstar's shares will traded at NASDAQ exchange under ticker symbol "WMIH".
The Board of Directors of the merged Company will have seven members of which three will be from WMIH and four from Nationstar.
Conversion of WMIH Preferred shares and Warrants
Once the deal is completed, all outstanding WMIH Series B Preferred shares and warrants to purchase WMIH's shares will be converted to WMIH's common stock. The shares after the conversion have been considered while calculating the final ownership stake in the merged Company. Accordingly, the WMIH's Series B 5% Convertible Preferred Stock will be converted at a fixed conversion price of $1.35 per share. After the close of the transaction, holders of WMIH Series B Preferred shares will own approximately 477 million WMIH's shares, or approximately 43% stake in of the merged company.
Why Nationstar Mortgage is an ideal acquisition?
Dallas, Texas-based Nationstar provides servicing, origination, and transaction-based services related principally to single-family residences in US. Nationstar is a recognized leader in the mortgage industry with more than two decades of experience, and its flagship brand, Mr. Cooper®, is the largest non-bank mortgage servicer in the nation.
Nationstar's fully integrated loan originations platform supported by its Xome® business, combines mortgage servicing with services focused on the real estate and mortgage markets. The Company has made significant investments in its team, new technology, and processes with the aim of enhancing overall customer experience. It has over three million customers. Nationstar is uniquely positioned for growth in a highly addressable and extremely healthy housing market.
WMIH has been growing its business via strategic acquisitions across industries with major focus on the financial institutions sector. The acquisition of Nationstar is expected to expand its presence in the mortgage servicing and loan and real estate segment. The deal is also expected to increase WMIH's cash flows and add great value for WMIH's shareholders.
About WMIH Corp.
WMIH was formerly known as Washington Mutual, Inc. It is the parent of WM Mortgage Reinsurance Company (WMMRC), a Hawaii corporation. The Company's primary business is a legacy reinsurance business that is currently operated in runoff mode by WMMRC. WMIH, in January 2018, dissolved its wholly-owned subsidiary WMI Investment Corp., a Delaware corporation.
Stock Performance Snapshot
February 14, 2018 - At Wednesday's closing bell, WMIH Corp.'s stock rose 4.07%, ending the trading session at $1.28.
Volume traded for the day: 5.53 million shares, which was above the 3-month average volume of 999.53 thousand shares.
Stock performance in the last month - up 30.28%; previous three-month period - up 96.92%; past six-month period - up 16.36%; and year-to-date - up 50.75%
After yesterday's close, WMIH Corp.'s market cap was at $257.83 million.
Price to Earnings (P/E) ratio was at 5.04.
The stock is part of the Financial sector, categorized under the Property & Casualty Insurance industry. This sector was up 1.8% at the end of the session.
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