Kyle Bass

Kyle Bass’ Hayman Capital Management, L.P. has purchased close to ten percent stakes in two companies, according to SEC filings today. Bass bought 5,064,550 shares of Dex One Corporation (NYSE:DEXO) or 9.95 percent of the company. He also purchased 1,560,941 shares of SuperMedia Inc  (NASDAQ:SPMD), or 9.96% of outstanding shares. Interestingly, John Paulson is a large shareholder in both companies. Paulson’s hedge fund, Paulson & Co., is the fourth largest shareholder of Dex One Corporation, Bass is now the second largest investor in the company. Paulson & Co. is the largest shareholder of SuperMedia Inc, with 16.64% of outstanding shares, Bass now is the third largest shareholder.

Hayman Capital has very little holdings in equity, and both companies have a market cap under $100 million, making this a small transaction for the Texas based hedge fund. However, the revelation of large stakes in two companies which Paulson also owns is interesting.

SuperMedia Inc  (NASDAQ:SPMD) is a yellow pages directory publisher in the United States. For the nine months ended 30 September 2012, SuperMedia Inc revenues decreased 17% to $1.04B. Net income applicable to common stockholders totaled $174M vs. loss of $911M. Revenues reflect a decrease in demand for the Company’s products and services due to unfavorable market conditions. Net Income reflects Impairment charge decrease from $1B (expense) to $0K, Selling decrease of 22% to $261M (expense).

Dex One Corporation (NYSE:DEXO), formerly R.H. Donnelley Corporation (RHD), is a marketing services company that helps local businesses to reach consumers. For the nine months ended 30 September 2012, Dex One Corporation revenues decreased 12% to $998.7M. Net income totaled $97.8M vs. loss of $524.5M. Revenues reflect a decrease in demand for the Company’s products and services due to unfavorable market conditions. Net Income reflects Impairment charges (3) decrease from $801.1M (expense) to $0K, Gain on debt repurchases, net increase from $0K to $139.6M (income).

Disclosure: No position

 


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