tag:blogger.com,1999:blog-5389144729834496735.post3374842835997152592..comments2024-03-17T05:15:55.634-04:00Comments on The Brooklyn Investor: WL Ross Holding Corp (WLRH)Unknownnoreply@blogger.comBlogger19125tag:blogger.com,1999:blog-5389144729834496735.post-40781148524508163452016-05-24T10:21:19.804-04:002016-05-24T10:21:19.804-04:00They are buying Nexeo Solutions for $1.6B. It does...They are buying Nexeo Solutions for $1.6B. It does look like a platform strategy based on comments in the press release by Wilbur Ross, Jr.. Secondary financing coming in as well, lots of moving parts.Anonymoushttps://www.blogger.com/profile/14404755417965187357noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-56979052669830062322016-02-25T14:50:36.288-05:002016-02-25T14:50:36.288-05:00Hi, what exactly are you looking at? You have to...Hi, what exactly are you looking at? You have to look at the "common stock subject to possible redemption" as that class gets $10.00.kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-14662791719845541112016-02-23T15:36:17.414-05:002016-02-23T15:36:17.414-05:00based on the 10k I get $9.90 on a no deal cash bac...based on the 10k I get $9.90 on a no deal cash back to shareholders value. Let me know if I am wrong. Thanksseattlesamhttps://www.blogger.com/profile/09400058856324490212noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-61441771166448707662016-01-26T10:43:56.929-05:002016-01-26T10:43:56.929-05:00I think the delisting notice is for not holding an...I think the delisting notice is for not holding an annual meeting in 2015 or some such... kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-85964499310587513272016-01-20T19:16:50.513-05:002016-01-20T19:16:50.513-05:00I thought they had until June 2016, Ed ?I thought they had until June 2016, Ed ?Anonymoushttps://www.blogger.com/profile/17688586775107784375noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-20587774086763574632015-11-17T12:03:51.602-05:002015-11-17T12:03:51.602-05:00Just curious if anybody had looked at this story r...Just curious if anybody had looked at this story recently. I believe WLRH only has a month or so before they need to take action on a deal (at least on a preliminary / term sheet basis). Interesting near-term opportunity perhaps but at least judging from a quick scan of news and filings it's pretty much radio silent from the sponsor. Anybody have clarity on dealflow and whether a deal seems likely here?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-29374610105958202362015-03-11T04:00:45.305-04:002015-03-11T04:00:45.305-04:00I think WLRH also acquired some of the really corr...I think WLRH also acquired some of the really corrupt mortgage service companies to take advantage of the windfall in foreclosed properties.<br />SCUMAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-80292492861999935632015-03-05T12:13:16.301-05:002015-03-05T12:13:16.301-05:00This is looking interesting here. It's possibl...This is looking interesting here. It's possible that WLRH could collapse after the deal ala PANL, that's an ugly one. If WLRH acquries some turkey like SD an extra $500M isn't going to make a difference and WLRH will sink to the level of the acquired. That would be bad. But at this point hard to believe there aren't multiple attractive candidates that would pop the stock higher upon a deal. bjdubbsnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-53173052828131964482014-08-29T17:28:30.287-04:002014-08-29T17:28:30.287-04:00Hi, they paid $25,000 for the 20 percent of shares...Hi, they paid $25,000 for the 20 percent of shares, and paid $10 million for 20 million warrants. They do pay a $10,000 per month fee for administrative services to the sponsor. Otherwise, executive and director compensation, management fees and other things will be subject to whatever deal they close so won't be decided until then... We won't know who will work for the new entity; Ross May not be CEO etc...<br /><br />Thanks for reading.kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-64444189332886452552014-08-29T11:44:45.968-04:002014-08-29T11:44:45.968-04:00Kk, can you please elaborate on the incentives for...Kk, can you please elaborate on the incentives for Wilbur Ross and his team.<br /><br />I believe he receives 20% of the equity. Did he put up any capital or are these founder shares that are given to him with a nominal investment attached? Also, does Wilbur receive any ongoing management fees?<br /><br />Thanks again for a great blog!<br /> <br /> Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-83807769908171756102014-08-26T14:33:59.342-04:002014-08-26T14:33:59.342-04:00Thanks, you're right. I just saw that in the 1...Thanks, you're right. I just saw that in the 10-q too. I don't know why I missed that. So if no deal goes through, the IB fee doesn't come due and there is enough cash to redeem $10.00 to the public shareholders at 50.025 mn shares, so there is no extra cash lying around even if IB commissions don't come due. <br /><br />That makes more sense, actually... Why would there be extra in it for the public shareholders? That doesn't make sense on further thought, lol... <br /><br />Well, the story is still the same for the most part. Hopefully nobody put this position on at 7x leverage hoping to make a fictional gain. <br /><br />It is more interesting to me as a potential PAH or some ongoing thing. <br /><br />Thanks for the correction. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-23478108492293917642014-08-26T13:12:44.331-04:002014-08-26T13:12:44.331-04:00Me again- from farther down the 10-Q: (page F-8)
...Me again- from farther down the 10-Q: (page F-8)<br /><br />Redeemable Common Stock<br /><br />As discussed in Note 3, all of the 50,025,000 common shares sold as part of the units in the Public Offering contain a redemption feature which allows for the redemption of common shares under the Company’s Liquidation or Tender Offer/Stockholder Approval provisions. In accordance with ASC 480, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480. Although the Company did not specify a maximum redemption threshold, its charter provides that in no event will it redeem its Public Shares in an amount that would cause its net tangible assets (stockholders’ equity) to be less than $5,000,001.<br /><br />The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of the security to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against accumulated deficit.<br /><br /> <br /><br />Accordingly, at June 30, 2014, 47,789,319 of the 50,025,000 Public Shares were classified outside of permanent equity at its redemption value.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-45939731001316784282014-08-26T12:31:00.716-04:002014-08-26T12:31:00.716-04:00I think using 47,789,319 shares of "stock sub...I think using 47,789,319 shares of "stock subject to possible redemption" is incorrect and throwing off your redemption value. From reading the S-1, i think that number is a theoretical maximum number of shares that the SPAC could allow to redeem while still maintaining >$5MM of stockholders equity and thus avoiding some penny stock regulations. Notice how the Total stockholders equity in the 10-Q equals as close to 5,000,000 as possible in $10 increments. <br /><br />I believe for the purpose of calculating the actual redemption or liquidation value of a share, the 47,789,319 number is completely meaningless. I'm not positive what the correct share count is, but I would guess its much closer to the 50,025,000 shares sold in the IPO.<br /><br />Love your blog, please keep it up!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-47454864287596546752014-08-25T08:59:26.443-04:002014-08-25T08:59:26.443-04:00somewhat interesting timing wise as well... PE ha...somewhat interesting timing wise as well... PE has trouble raising funds when assets are cheap. impossible to read too much into it, but one could choose to interpret this as Ross saying he thinks there will be great opportunities to put cash to work in the next 2 years, meaning he expects a major sell off. pure speculation obviously.12quartershttps://www.blogger.com/profile/08789879622585141310noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-30271226280030466862014-08-24T18:37:44.732-04:002014-08-24T18:37:44.732-04:00I would guess it's a way to get permanent capi...I would guess it's a way to get permanent capital. Private equity funds have to keep raising funds to replace old funds. The industry has always envied the Buffett / Berkshire model because they have permanent capital to work with. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-15321900405695136492014-08-24T15:44:31.019-04:002014-08-24T15:44:31.019-04:00Any guess what's the motivation for Wilbur Ros...Any guess what's the motivation for Wilbur Ross doing this SPAC?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-14980782421626130072014-08-24T09:33:29.075-04:002014-08-24T09:33:29.075-04:00Nevermind, ok thanks for clarifying. In the IPO 43...Nevermind, ok thanks for clarifying. In the IPO 43.5m shares were sold and there exists an option for buying additional 6.5m shares, so thats how you get to 500m. I assume not all options were exercised until now. (therefore common stock outstanding +47m)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-2941386028653970892014-08-23T20:28:08.961-04:002014-08-23T20:28:08.961-04:00Oops, sorry. I hit the wrong button and accidentl...Oops, sorry. I hit the wrong button and accidently removed your comment. <br /><br />Anyway, yes, you are missing something. The cash held in trust is held only for shares purchased in the IPO. They are known as shares subject to redemption, or some such thing. There is another 20% of shares outstanding but those are the Founders' shares, and they have no redemption right. <br /><br />It's a little confusing, but that's how these things work. <br /><br />Thanks for reading. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-31696342081874558152014-08-23T16:18:33.247-04:002014-08-23T16:18:33.247-04:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.com