UWM Holdings raises $2.05B from Oaktree and Ishbia family

UWM Holdings Corporation (NYSE: UWMC) announced a $2.05 billion capital investment from Oaktree Capital Management, L.P. and the Ishbia family, structured as preferred equity with warrants. The company also said it is suspending its quarterly common stock dividend.

The Pontiac, Michigan-based mortgage company said $1.65 billion of the preferred equity will be funded at closing. The remaining capital is tied to a planned $400 million rights offering to Class A shareholders, scheduled to commence October 5, 2026, and expire November 12, 2026. The rights offering record date is October 2, 2026. Each Class A shareholder will receive one subscription right per share, allowing purchase of a pro rata portion of 200 million shares at the greater of $2.00 or 85% of the volume-weighted average price over a specified ten-day trading window. The rights will be listed on the NYSE.

According to the company's statement, net proceeds will primarily be used to repay existing debt and mortgage servicing rights financing facilities, with remaining funds directed toward general corporate purposes.

As part of the transaction, a representative from Oaktree will join UWM's board of directors, and Oaktree will have the right to nominate one additional independent director.

"We're taking decisive action to make UWM stronger, more liquid and better positioned to win for years to come," said Mat Ishbia, Chairman, President and Chief Executive Officer of UWM.

Nick Basso, Co-Head of North America for Oaktree's Global Opportunities Group, said the investment reflects "conviction in UWM's differentiated platform, market leadership and long-term growth potential."

The Ishbia family is investing through a new family investment vehicle called SFS Group Capital, LLC. J.P. Morgan Securities LLC is serving as financial advisor to UWMC, and Wells Fargo Securities is advising Oaktree. Greenberg Traurig, P.A. is serving as legal counsel to UWMC, while Kirkland & Ellis LLP is counsel to Oaktree.

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