UWM Holdings Corporation Announces Intent to Accelerate Buyback in Public Market in Lieu of Previously Announced Secondary Offering and Concurrent Stock Repurchase
19 November 2021 - 1:46PM
Business Wire
UWM Holdings Corporation (NYSE:UWMC) (the “Company”) announced
today that SFS Holding Corp, (“SFS”), its principal shareholder,
has terminated the previously announced secondary offering of Class
A Common Stock and concurrent stock repurchase effective
immediately (the “Offering”). The Offering was intended to increase
UWMC’s public float by approximately 50%, thereby making it a more
liquid, tradable stock for larger indexes and institutional
investors, while at the same time utilizing the Company’s buyback
authorization to reduce the number of fully diluted shares
outstanding. However, the market’s reaction to the Offering
resulted in a share price level at which SFS is not willing to
sell. With the termination of the Offering, no shares of common
stock will be sold by SFS at this time. Instead, the Company
intends to accelerate its previously announced buyback program and
defer its plans to increase public float to a later date.
Mat Ishbia, the Company’s Chairman and CEO stated: “As the
principal owner of SFS, I was willing to sell a percentage of our
ownership in UWM at less than what I think to be fair value because
we were advised that increased float in the public market would be
beneficial for the UWMC shareholders, including its largest
shareholder, SFS. I was also willing to have SFS sell additional
shares to the Company at the same time and price to make good on
our buyback commitment and reduce the number of shares outstanding
without also decreasing the public float. Unfortunately, while
there was more than enough demand from potential investors, the
overall market conditions were such that the prices offered were
not at levels that I will entertain.”
Mr. Ishbia continued, “We are very proud of our financial and
operational results both in the third quarter and in prior
quarters. I believe, both as the CEO of UWM and the controlling
shareholder of UWMC, that the Company is poised for even better
performance in the upcoming quarters. We will be aggressive with
utilizing our remaining buyback authorization at these prices and
if the market returns to a reasonable level, SFS will be willing to
do its part by providing availability to increase the public float,
but the terms have to make sense, and doing a deal today at these
levels did not make sense to me.”
About UWM Holdings Corporation and United Wholesale
Mortgage
Headquartered in Pontiac, Michigan, UWM Holdings Corporation is
the publicly traded indirect parent of United Wholesale Mortgage,
LLC (“UWM”). UWM is the largest wholesale mortgage lender in the
United States, originating mortgage loans exclusively through the
wholesale channel. With a culture of continuous innovation of
technology and enhanced client experience, we lead our market by
building upon our proprietary and exclusively licensed technology
platforms, superior service and focused partnership with the
independent mortgage broker community. UWM focuses on providing
highly efficient, accurate and expeditious lending support. We
originate 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 intent to accelerate the buyback. These forward-looking
statements may be affected by risks and uncertainties in UWM’s
business and market conditions. UWM wishes to caution readers that
certain important factors may have affected and could in the future
affect UWM’s actual results and could cause UWM’s actual results
for subsequent periods to differ materially from those expressed in
any forward-looking statement made by or on behalf of UWM. UWM
undertakes no obligation to update forward-looking statements to
reflect events or circumstances after the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20211118006442/en/
INVESTOR CONTACT MATT ROSLIN
InvestorRelations@uwm.com
MEDIA CONTACT NICOLE YELLAND Media@uwm.com
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