UWM Holdings commences $400 million rights offering with 0.57 share per right ratio
Holders of Class A common stock receive one subscription right per share as UWM Holdings kicks off its $400 million offering.
Key takeaways
- UWM Holdings Corp (UWMC) commenced a rights offering to raise up to $400 million, giving stockholders one subscription right per Class A share owned as of Oct. 2, 2026. Each right entitles holders to purchase 0.57 shares.
UWM Holdings Corp (UWMC) said in a regulatory filing on Monday that it commenced its previously announced rights offering to raise proceeds of up to $400 million.
The company said holders of its Class A common stock as of October 2, 2026, will receive one subscription right for each share owned. Each right entitles the holder to purchase 0.57 shares of Class A common stock.
The subscription price per share will be equal to the greater of $2.00 or 85% of the volume-weighted average price per share during the ten consecutive trading days ending on the third trading day immediately prior to the expiration of the rights offering. Stockholders who fully exercise their basic subscription rights will also be entitled to an over-subscription right for additional unsubscribed shares.
The rights offering is scheduled to expire at 5:00 p.m. Eastern Time on November 12, 2026. The company noted that as of the record date, the closing price of its Class A common stock on the New York Stock Exchange was $1.26, and if the market price remains less than the minimum subscription price of $2.00, the rights will not be eligible to trade on the exchange.
The company previously entered into a support and backstop agreement with SFS Group Capital, LLC, CEO Mat Ishbia, and Oaktree Capital Management, L.P. If the rights offering does not raise $400 million through subscriptions, Oaktree has the option, and the Ishbia support parties have the obligation, to purchase securities for the unfunded amount to ensure gross proceeds reach at least $400 million.