UWM Holdings Corporation, the parent company of United Wholesale Mortgage (UWM), has announced a new offering of $800 million in senior notes due in 2030.
The issuance was originally publicized at a volume of $500 million, before UWM increased the offering later this week. Sale of the notes will be private, offered only to qualified institutional buyers. The notes will be guaranteed on a senior unsecured basis by UWM and will be ranked pari passu (on equal footing) with UWM’s existing senior notes. Given that expectation, the proposed issuance has been assigned a speculative rating of “BB-(EXP)” by Fitch Ratings, signifying a moderately high credit risk, equalized to UWM’s existing senior unsecured debt.
Proceeds from the sale will be used to pay down outstanding debt on UWM’s mortgage servicing rights facilities, with extra proceeds to be held as cash for general corporate purposes, per a statement from UWM.
It has been an active few weeks for Pontiac, Michigan-based UWM, which also recently launched its “60 bps for 60 Days” promotion, giving its broker partners 60 basis points off conventional or government loans for borrowers with a FICO score of 720 or higher through Jan. 31, 2025. Last week, the lending giant also announced that, until March 31, 2025, it is getting rid of loan-level pricing adjustments on FHA, VA and USDA loans for borrowers with a FICO score of 600 or above.
