other material
confidence high
sentiment negative
materiality 0.75
UWM launches $400M rights offering; subscription floor $2.00 vs $1.26 close, rights may not trade on NYSE
UWM Holdings Corp
- Rights offering offers up to 200,000,000 Class A shares to raise up to $400 million; one right per share held Oct. 2; expires 5:00 p.m. ET Nov. 12, 2026.
- Each right buys 0.57 Class A shares at the greater of $2.00 or 85% of 10-day VWAP ending three trading days before expiration.
- UWM closed at $1.26 on the record date; if the stock stays below the $2.00 minimum, the rights will not be eligible to trade on the NYSE.
- Backstop: if subscriptions don't reach $400M, Oaktree may and CEO Mat Ishbia's SFS Group must buy the unfunded amount, via Class A at subscription price or preferred plus warrants.
- Backstop purchasers may buy junior perpetual non-convertible preferred plus warrants equal to 20% of the preferred's initial liquidation preference.