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