UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 10, 2013

 

 

WMI Holdings Corp.

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

Washington   001-14667   91-1653725

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

1201 THIRD AVENUE, SUITE 3000

SEATTLE, WASHINGTON

  98101
(Address of Principal Executive Offices)   (Zip Code)

(206) 432-8887

(Registrant’s Telephone Number, Including Area Code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Section 7 – Regulation FD

Item 7.01 Regulation FD Disclosure.

As previously reported, on March 19, 2012, WMI Holdings Corp. (formerly known as Washington Mutual, Inc. (the “ Company ”)) issued $110 million aggregate principal amount of its 13% Senior First Lien Notes due 2030 (the “ First Lien Notes ”) under an indenture, dated as of March 19, 2012 (the “ First Lien Indenture ”), between the Company and Wilmington Trust, National Association, as Trustee. Additionally, the Company issued $20 million aggregate principal amount of its 13% Senior Second Lien Notes due 2030 (the “ Second Lien Notes ” and, together with the First Lien Notes, the “ Runoff Notes ”) under an indenture, dated as of March 19, 2012 (the “ Second Lien Indenture ” and, together with the First Lien Indenture, the “ Indentures ”), between the Company and Law Debenture Trust Company of New York, as Trustee. Under the Indentures, the Company is required to provide, to the holders of the Runoff Notes, unaudited monthly financial statements with respect to WM Mortgage Reinsurance Company, Inc., the Company’s subsidiary. The unaudited financial statements for WM Mortgage Reinsurance Company, Inc., as of and for the period ended November 30, 2012, are attached to this Form 8-K as Exhibit 99.1.

Cautionary Statement Regarding Forward-Looking Statements

This Form 8-K and the exhibits include forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this report that address activities, events, conditions or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business and these statements are not guarantees of future performance. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements may include the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “strategy,” “future,” “opportunity,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks are identified and discussed in the Company’s prior quarterly report for the quarter ended June 30, 2012 under Risk Factors in Part II, Item 1A. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statement speak only as of the date they are made, and we do not undertake to update any forward-looking statement, except as required by law. Readers should carefully review the statements set forth in the reports, which the Company has filed or will file from time to time with the Securities and Exchange Commission.

Section 9 – Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits:

 

99.1    Unaudited condensed balance sheet and condensed statement of operations of WM Mortgage Reinsurance Company, Inc. as of and for the period ended November 30, 2012.

 

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   

WMI HOLDINGS CORP.

(Registrant)

Date: January 10, 2013   By:  

/s/ Charles Edward Smith

    Name:   Charles Edward Smith
    Title:   Interim Chief Executive Officer

 

3


EXHIBIT INDEX

 

99.1    Unaudited condensed balance sheet and condensed statement of operations of WM Mortgage Reinsurance Company, Inc. as of and for the period ended November 30, 2012.

 

4

Exhibit 99.1

WM MORTGAGE REINSURANCE COMPANY INC.

UNAUDITED CONDENSED BALANCE SHEET

AS OF NOVEMBER 30, 2012

(in thousands)

 

     MODIFIED GAAP
BALANCE SHEET
 

ASSETS

  

CASH & CASH EQUIVALENTS

     31,490   

INVESTMENTS

     9,420   

INVESTMENTS HELD IN TRUST

     220,773   

ACCRUED INTEREST

     1,458   

REINSURANCE PREMIUMS RECEIVABLE

     1,307   
  

 

 

 

TOTAL ASSETS

     264,448   
  

 

 

 

LIABILITIES AND STOCKHOLDER’S EQUITY

  

LIABILITIES:

  

ACCRUED EXPENSES

     140   

ACCRUED INVESTMENT EXPENSES

     44   

ACCRUED ADMINISTRATIVE FEES

     110   

ACCRUED CEDING FEES

     133   

UNEARNED PREMIUMS

     237   

LOSSES PAYABLE

     3,137   

LOSS RESERVES

     66,933   

IBNR

     2,187   

CONTINGENCY RESERVES

     41,418   
  

 

 

 

TOTAL LIABILITIES

     114,339   
  

 

 

 

STOCKHOLDER’S EQUITY:

  

CAPITAL STOCK

     1   

PAID-IN CAPITAL

     16,659   

ADDITIONAL PAID-IN CAPITAL

     53,220   

CONTINGENCY RESERVES

     (41,418

DIVIDENDS PAID

     (10,250

RETAINED EARNINGS (ACCUMULATED DEFICIT)

     130,886   

NET INCOME (LOSS) - YEAR TO DATE

     1,011   
  

 

 

 

TOTAL STOCKHOLDER’S EQUITY

     150,109   
  

 

 

 

TOTAL LIABILITIES & STOCKHOLDER’S EQUITY

     264,448   
  

 

 

 


WM MORTGAGE REINSURANCE COMPANY INC.

UNAUDITED FINANCIAL STATEMENTS

CONDENSED STATEMENT OF OPERATIONS

FOR THE PERIOD ENDED NOVEMBER 30, 2012

(in thousands)

 

     MONTH TO
DATE
    YEAR TO
DATE
 

UNDERWRITING INCOME:

    

ASSUMED PREMIUMS WRITTEN

     1,245        19,105   

CHANGE IN UNEARNED PREMIUMS

     37        192   
  

 

 

   

 

 

 

NET PREMIUMS EARNED

     1,282        19,297   

UNDERWRITING EXPENSES:

    

LOSSES PAID

     3,137        44,744   

PROVISION FOR LOSS RESERVES

     (1,823     (27,144

PROVISION FOR IBNR

     565        66   

CEDING COMMISSION

     134        2,176   
  

 

 

   

 

 

 

TOTAL UNDERWRITING EXPENSES

     2,013        19,842   
  

 

 

   

 

 

 

UNDERWRITING INCOME (LOSS)

     (731     (545
  

 

 

   

 

 

 

GENERAL & ADMINISTRATIVE EXPENSES:

    

MANAGEMENT FEES

     12        195   

ACTUARY CONSULTING FEES

     35        262   

AUDIT FEES

     0        268   

LEGAL FEES

     3        82   

ADMINISTRATIVE FEES

     110        923   

BANK SERVICE FEES

     0        21   
  

 

 

   

 

 

 

TOTAL GENERAL & ADMINISTRATIVE EXPENSES

     160        1,751   
  

 

 

   

 

 

 

INTEREST EXPENSE

    

IINTEREST INCOME

     2        18   

INVESTMENT INCOME - CORPORATE BONDS

     300        4,631   

INVESTMENT INCOME - MBS BONDS

     39        691   

INVESTMENT INCOME - US AGENCY

     190        2,641   

INVESTMENT INCOME - US TREASURY

     0        1   

INVESTMENT INCOME - FOREIGN ISSUE

     52        875   

BOND AMORTIZATION - CORPORATE BONDS

     (86     (1,235

BOND AMORTIZATION - MBS BONDS

     (1     (5

BOND AMORTIZATION - US AGENCY

     (12     (321

BOND AMORTIZATION - US TREASURY

     0        0   

BOND AMORTIZATION - FOREIGN ISSUE

     (12     (302

INVESTMENT EXPENSE

     (44     (435

GAIN/LOSS ON SALE OF INVESTMENT

     51        2,827   

FAS 159 GAIN ON TRADING SECURITIES

     (144     72   
  

 

 

   

 

 

 

NET INVESTMENT INCOME

     335        9,458   
  

 

 

   

 

 

 

GAIN (LOSS) ON COMMUTATION

     0        (6,151

INCOME (LOSS) BEFORE TAX PROVISION

     (556     1,011   

CURRENT FEDERAL INCOME TAX (BENEFIT) EXPENSE

    

PROVISION FOR DOUBTFUL INCOME TAX RECEIVABLE

    

DEFERRED FEDERAL INCOME TAX (BENEFIT) EXPENSE

     (195     354   

CHANGE IN VALUATION ALLOWANCE

     195        (354
  

 

 

   

 

 

 

FEDERAL INCOME TAX EXPENSE

    

NET INCOME (LOSS)

     (556     1,011