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.