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Xome parent company Nationstar (now Mr. Cooper) merging with WMIH Corp (formerly WaMu)

by Greg Robertson on February 20th, 2018

Ben Lane, reporting for HousingWire
Nationstar (aka Mr. Cooper) merging with WMIH Corp. in $3.8 billion deal

“According to the companies, $1.2 billion in cash is being made available to Nationstar shareholders who elect to take cash for their shares.

The value of the WMIH shares included in the deal is expected to be approximately $702 million.

Additionally, approximately $1.9 billion of Nationstar’s existing senior unsecured notes will be refinanced at closing.

That places the aggregate consideration for Nationstar at $3.8 billion, according to an investor presentation published as part of the deal.

Fortress, which was acquired late last year by SoftBank Group, a Japanese technology company, in a $3.3 billion deal, is cashing out roughly half of its Nationstar shares in the deal.

As stated above, Fortress currently owns approximately 68.1 million shares of Nationstar’s stock, or 71.06% of the company.

According to the details provided by Nationstar, Fortress has agreed to the deal and is taking cash for approximately 34 million of its shares.

That means that at $18 per share, Fortress will take away roughly $612 million in the deal and will maintain ownership of roughly half of its shares.

Per Fortress’ website, its initial outlay for Nationstar was $450 million.

Upon completion of the deal, Nationstar shareholders will own approximately 36% of the combined company and WMIH shareholders will own approximately 64%.

Just re-reading this makes my head hurt. Sound a bit “Foley-esque”, but maybe that’s giving them too much credit.

““So what happens next? In a lot of ways, it will be business as usual. Our jobs will be the same as they were yesterday,” Bray added. “Today marks another huge day in our company’s history. Please take a moment to think about how far we’ve come and how fortunate we are as a company. We’ve built something truly extraordinary at Mr. Cooper, and I have never been more excited for what’s to come.”

In an additional Q&A, the company provided more details about the deal, including stating that all Nationstar’s businesses, including Xome, are part of the deal.”

So Nationstar, now Mr. Cooper, sold red-Real Estate Digital to Constellation Software (owners of MarketLeader, Z57, Diverse Solutions, etc) to WMIH, formerly Washington Mutual. Something tells me there is more to this story.

From → XOME

  1. David Charron permalink

    Jay Gaskill always the smartest guy in the room!

  2. John Mosey permalink

    I agree with David. If there was a HOF in this industry for making deals that are mind-blowingly huge wins for wherever Jay works, Jay would have a bust and statue and his jersey in a glass case at the front door.

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