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PONTIAC, Mich. - UWM Holdings Corporation (NYSE:UWMC), a mortgage lender with a market capitalization of $10.2 billion, has priced an offering of $1 billion in senior notes due 2031, the company announced Tuesday. The offering was increased from the previously announced size of $600 million. According to InvestingPro data, the company has been quickly burning through cash, with negative free cash flow of $2.46 billion in the last twelve months.
The notes will carry an interest rate of 6.25% and will be issued at 100% of their face value. They will be guaranteed on a senior unsecured basis by United Wholesale Mortgage, LLC, a wholly-owned subsidiary of UWM Holdings.
The company plans to use the proceeds to repay its 5.5% Senior Notes due on November 15, 2025, pay down amounts outstanding under its MSR Facilities, and if any funds remain, for working capital.
The offering is expected to close on September 16, 2025, subject to customary closing conditions. The notes were offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to certain non-U.S. persons in transactions outside the United States.
United Wholesale Mortgage operates as the nation’s largest home mortgage lender by closed loan volume and has been the largest wholesale mortgage lender for nine consecutive years, according to the company’s press release statement. The firm originates primarily conforming and government loans across all 50 states and the District of Columbia, while maintaining a notable 6.19% dividend yield for shareholders. For detailed analysis and additional insights, investors can access the comprehensive research report available on InvestingPro.
The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.
In other recent news, UWM Holdings Corporation reported its second-quarter earnings for 2025, significantly surpassing expectations. The company achieved an earnings per share of $0.16, well above the forecasted $0.06. Revenue also exceeded projections, coming in at $758.7 million compared to the anticipated $636.08 million. Additionally, UWM Holdings announced a private offering of $600 million in senior notes due in 2031 through its subsidiary, UWM Holdings, LLC. These notes will be guaranteed on a senior unsecured basis by United Wholesale Mortgage, LLC. This development follows the company’s strong financial performance, as reflected in its recent earnings report. The senior notes will rank equally with United Wholesale Mortgage’s existing senior unsecured notes. These recent developments highlight UWM Holdings’ strategic financial maneuvers and positive earnings results.
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