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  • valuguy2002 valuguy2002 Aug 24, 2009 1:55 PM Flag

    Possible Debt Buyback!

    Principal Life Insurance Company report in their 6/30/09 quarterly Schedule D Part 4 filing that they disposed their RAM Holdings debt $5,000,000 Par cor consideration of $1,500,000 or 30 cents on the dollar!

    I think it is very possible that RAM bought the debt back for that price!!! Since it is debt and therefore higher on the credit scale than preferreds...we have to believe that the preferreds will be bought back even lower. This would be really terrific news!!!

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    • pretty advantageous I'd say

    • right

    • What's the significance of two debt holders valuing the debt at 4.5 cents on the dollar?

      Simply that it allows RAMR to buy it back at an enormous discount?

    • Hmmm, I just looked up Eaton's 5/31 portfolio report and it shows RAM on there valued at 4.5 cents on the dollar...don't know why Bloomberg shows it being disposed of?? I just looked up USAA's as well, same date 5/31/09, and they priced the shares AT THE SAME price as Eaton ($45.375 on a $1,000 par) so that is again 4.5 cents on the dollar!!!! And USAA has the security labeled correctly as "non-income producing"!! I think it is strange that two different asset managers would have the same exact price for a small, illiquid security?!? Wow this is HUGE and may explain why there is so much insider buying going on!!!

    • Thx for the info girth...the 13,000 shares for Eaton were disposed of in Q1 so was that 6 cents an actual sale price?

    • Girth, superb find. I am feeling much better about this as a result. This tempers my increasing concern as to loss development on insured portfolio going forward.

      Any sane holder of any debt of RAM would, knowing the ongoing tender, at least SEE if RAM could beat the offer at hand. I am dead certain RAM would pay >.30 for the senior notes, so would say it is probable (but not by any means certain, far from that) they were the repurchaser.

      Those numbers are very good to hear. Much appreciated.

      Hope all are well. FGIC numbers to be released on's IR investor information // financial statements page Friday, not sure when.

      Will post filings and my take for the little it is worth then.


    • Thanks for the information, I've looked through a few of the filings and found Eaton's valuing their 13000 shares of RAM Series A at a whopping .06 (cents) on the dollar. AAA appears to value their shares around .20 (cents) on the dollar. Interestingly enough, just two years ago Eaton valued the same 13000 shares at .98 (cents) on the dollar.

    • I can only see a partial list for the As...Eaton Vance holds $5mm as of 3/31 and they disposed of $14mm during Q1. USAA Investment Management holds $10mm.

    • Don't have a bloomberg. Maybe someday.

      Can you find the holders of the Preferred (A's & #$%$?

      Realize you may be busy, so just a thought at your convenience.


    • If you have a Bloomberg you can pull up an issue like Ram's 6.875% 4/24 and use the "PHDC" function to find current holders. In addition to PFG, OM Financial holds $24mm, American Income Life $5mm and United American Insurance $5mm. Each company has to file quarterly statements with the NAIC and you should be able to find those filings on their website (or shoot them an email to find out how). Best of luck!

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