RE:Most just don't get itDon2018 wrote: Many think there will be 80 million shares in the end, which is incorrect.
The 80 million shares (approx) outstanding will make up the 16.5% of the recap.
That means there will be 80/16.5 = 484 million shares.
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A different perspective is as follows:
Currently 80.910M shares
Add 41.264M Shares for Senior unsecured notes portion (51.0% of current)
Add 26.296M Shares for Second Lien notes portion (32.5% of current)
The 16.5 comes from 100 - 51 - 32.5 = 16.5
So there would be 148.47M shares outstanding after the transaction?
(80.91 + 41.264 + 26.296 = 148.47)
Also the new shares are a conversion of debt so the more shares less debt should come into your calculations of value.