UWM Holdings Corporation Announces Offering of Senior Notes Due 2030

Rhea-AI Summary

UWM Holdings (NYSE: UWMC) has announced a private offering of $500 million senior notes due 2030 through its subsidiary, UWM Holdings, The notes will be guaranteed on a senior unsecured basis by United Wholesale Mortgage, and will rank equally with existing senior unsecured notes.

The company plans to use the proceeds to reduce outstanding amounts on United Wholesale Mortgage's MSR facilities and for general corporate purposes. The offering is exclusively available to qualified institutional buyers under Rule 144A and certain non-U.S. persons under Regulation S of the Securities Act.

Positive

• Access to $500 million in additional capital through senior notes offering
• Reduction of MSR facility debt obligations
• Strengthening of company's debt structure through long-term financing

Negative

• Increase in long-term debt obligations
• Additional interest expense burden from new notes
• Potential impact on company's debt-to-equity ratio

Insights

Financial Analyst

This $500 million senior notes offering represents a significant debt refinancing move for UWM Holdings. The strategic decision to refinance MSR (Mortgage Servicing Rights) facilities with longer-term senior notes could improve the company's debt structure and provide more financial flexibility. MSR facilities typically have shorter terms and variable rates, while senior notes offer fixed rates and longer maturities.

The private placement nature of the offering to qualified institutional buyers under Rule 144A suggests a more streamlined process compared to public offerings, though it limits the potential investor base. The pari passu ranking with existing senior unsecured notes maintains the company's straightforward debt hierarchy, which is positive for debt investors.

For UWMC, with a market cap of about $1 billion, this represents a substantial financing that could meaningfully impact its capital structure. The success of this offering will largely depend on market conditions and investor appetite for mortgage industry debt.

PONTIAC, Mich.--(BUSINESS WIRE)-- UWM Holdings Corporation (NYSE: UWMC) (“UWMC”) announced today that its direct subsidiary, UWM Holdings, LLC (“UWM Holdings”), has commenced a private offering of $500 million aggregate principal amount of senior notes due 2030 (the “Notes”). The Notes will be guaranteed on a senior unsecured basis by UWM Holdings’ wholly-owned subsidiary, United Wholesale Mortgage, LLC (“United Wholesale Mortgage”), and will rank pari passu in right of payment with United Wholesale Mortgage’s existing senior unsecured notes by virtue of such guarantee.

UWM Holdings expects to use the net proceeds from the offering to pay down outstanding amounts on United Wholesale Mortgage’s MSR facilities and for general corporate purposes.

The Notes will be offered only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The Notes have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable securities laws of any other jurisdiction. This press release does not and will not constitute an offer to sell any of the Notes or the solicitation of an offer to buy any of the Notes, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About UWMC, UWM Holdings and United Wholesale Mortgage

Headquartered in Pontiac, Michigan, UWMC is the publicly traded direct parent of UWM Holdings. United Wholesale Mortgage is the nation’s largest home mortgage lender by closed loan volume. United Wholesale Mortgage has been the largest wholesale mortgage lender in the nation by closed loan volume for nine consecutive years and is the largest purchase lender in the nation by closed loan volume. With a culture of continuous innovation of technology and enhanced client experience, United Wholesale Mortgage leads the market by building upon its proprietary and exclusively licensed technology platforms, superior service and focused partnership with the independent mortgage broker community. United Wholesale Mortgage originates primarily conforming and government loans across all 50 states and the District of Columbia.

Forward-Looking Statements

This press release includes forward-looking statements regarding the offering of the Notes and the intended use of the net proceeds. Forward-looking statements include statements identified by terms such as “expect,” “anticipate,” “believe,” “outlook,” “may,” “should,” “target” or similar terms and variations thereof. These forward-looking statements may be affected by risks and uncertainties in UWMC’s business and market conditions. UWMC wishes to caution readers that certain important factors may have affected and could in the future affect UWMC’s actual results and could cause UWMC’s actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of UWMC, including the risk that the offering of the Notes cannot be successfully completed. UWMC undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241205618741/en/

For inquiries regarding UWMC, please contact:

INVESTOR CONTACT

BLAKE KOLO

InvestorRelations@uwm.com

Source: UWM Holdings Corporation

FAQ

What is the size of UWMC's 2030 senior notes offering?

UWM Holdings (NYSE: UWMC) is offering $500 million in aggregate principal amount of senior notes due 2030.

How will UWMC use the proceeds from the 2030 senior notes?

UWMC plans to use the proceeds to pay down outstanding amounts on United Wholesale Mortgage's MSR facilities and for general corporate purposes.

Who can purchase UWMC's 2030 senior notes?

The notes are only available to qualified institutional buyers under Rule 144A and certain non-U.S. persons in transactions outside the United States under Regulation S.

Are UWMC's 2030 senior notes registered under the Securities Act?

No, the notes have not been registered under the Securities Act or securities laws of any other jurisdiction.