"UWM Holdings Corporation has closed the issuance of $1 billion in senior notes, an oversubscribed transaction that comes just two months before the maturity of its existing notes. The company initially planned to issue $600 million. Proceeds, due November 15, will be used to repay $800 million in senior notes that carry a 5.5% coupon, to pay down mortgage servicing rights (MSR) facilities, and UWM will apply the remainder for general working capital, according to a filing with the Securities and Exchange Commission (SEC)."
"The new senior notes, due 2031, carry a 6.250% coupon and are guaranteed on a senior unsecured basis by United Wholesale Mortgage, the company's mortgage lending and servicing arm. They rank pari passu with UWM's existing senior unsecured notes. The offering was limited to qualified institutional buyers. Rami Hasani, UWM's chief financial officer since April, said during an earnings call with analysts in August that the company was assessing and evaluating the opportunistic refinancing of our $800 million unsecured notes maturing in November of 2025."
UWM Holdings completed an oversubscribed $1 billion senior note offering, exceeding an initial $600 million target, with proceeds expected November 15. The proceeds will repay $800 million of senior notes carrying a 5.5% coupon, pay down mortgage servicing rights (MSR) facilities, and provide general working capital. The new notes mature in 2031, carry a 6.250% coupon, are guaranteed on a senior unsecured basis by United Wholesale Mortgage, and rank pari passu with existing senior unsecured notes. The offering was limited to qualified institutional buyers. UWM assessed opportunistic refinancing of notes maturing November 2025 and expected a favorable outcome given market conditions and investor demand.
Read at www.housingwire.com
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