- UWM to begin trading on NYSE under ticker “UWMC”
- Transaction strengthens UWM’s position as #1 wholesale mortgage
lender in the U.S. residential mortgage market
United Wholesale Mortgage, LLC ("UWM"), the #1 wholesale and
purchase mortgage lender in the U.S., and Gores Holdings IV, Inc.
("Gores Holdings IV") (NASDAQ: GHIV, GHIVU, and GHIVW), a special
purpose acquisition company (“SPAC”) sponsored by an affiliate of
The Gores Group, LLC ("The Gores Group" or "Gores"), today
announced the closing of their previously announced business
combination, which hails as the largest SPAC transaction to date
with a valuation of approximately $16 billion. In connection with
the closing, Gores Holdings IV changed its name to UWM Holdings
Corporation and will commence trading on the New York Stock
Exchange (“NYSE”) under the new ticker symbol “UWMC” on January 22,
2021. The transaction was approved at a special meeting of the
Gores Holdings IV stockholders on January 20, 2021.
The successful closing of the transaction builds on the
significant momentum UWM has achieved over the past several months.
UWM has realized record third quarter earnings, with originations
exceeding $54.2 billion in mortgage volume, net income of $1.45
billion and production volume exceeding the total 2019 production
record.
As part of its commitment to help independent mortgage brokers
operate their businesses even more nimbly, efficiently and
competitively, UWM recently launched technologies including UWM
InTouch, a mobile app that provides brokers access to do almost
every aspect of their jobs, from underwriting all the way through
Clear to Close, within the app rather than using a desktop
computer, and Blink+, which now offers loan officers a point of
sale, loan origination system and customer relationship manager
all-in-one package.
UWM also increased its workforce and now has over 8,000 team
members, to whom it provides career training for positions in
sales, information technology, underwriting and mortgage
operations.
Mat Ishbia, UWM‘s president and CEO said, “Today is a historic
day for the entire UWM team and all independent mortgage broker
partners throughout America. We are grateful to The Gores Group for
their expertise in the SPAC process, they are the experts in these
things and we’ve appreciated all of the guidance they’ve provided
to get us to our listing day. While UWM is already firmly
established as the number one wholesale mortgage lender, with a
huge leg up on technology and strong operational efficiencies, we
never relax. We have a clear objective of becoming the nation’s
number one overall mortgage lender and will continue to work
tirelessly to empower independent mortgage broker partners to build
and grow their businesses so that they can continue offering a
borrower experience that is easier, faster and less expensive than
any alternative.”
Alec Gores, Chairman and CEO of The Gores Group, stated, “UWM’s
unparalleled market position, customized technology and deep bench
of talent have brought the company to the forefront of the mortgage
industry. We’re excited about this important milestone and we are
confident that Mat’s exceptional leadership, along with his team’s
dedication and experience, will continue to drive long-term value
for all stakeholders for years to come. We look forward to UWM’s
continued success as a public company as it capitalizes on the
significant growth opportunities ahead.”
Transaction Details
In connection with the closing of the Business Combination, UWM
has received approximately $925 million of gross proceeds which
includes approximately $425 million of cash from Gores Holdings IV,
as well as $500 million in proceeds from the private placement
completed in connection with the Business Combination, which
included top-tier institutional investors.
Upon completion of the transaction, including the private
placement, the current owners of UWM will retain approximately 94%
ownership of the combined company. The existing management team,
led by long-standing President and CEO Mat Ishbia, will continue to
lead the business.
Additional information about the completed Business Combination
will be provided in a Current Report on Form 8-K to be filed by UWM
Holdings Corporation with the Securities and Exchange Commission
and available at sec.gov.
Advisors
Goldman Sachs & Co. LLC acted as financial advisor to UWM.
Greenberg Traurig, LLP acted as legal advisor to UWM.
Deutsche Bank Securities and Morgan Stanley & Co. LLC acted
as lead financial advisors, lead capital market advisors and
exclusive private placement agents to Gores Holdings IV, while
Moelis & Company LLC acted as financial advisor. Weil, Gotshal
& Manges LLP acted as legal advisor to Gores Holdings IV.
Forward Looking Statements
This press release contains “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements relate to expectations for future
financial performance, business strategies or expectations for
UWM’s business, including UWM’s plans of growing the independent
mortgage broker channel and becoming the nation’s leader in
mortgage originations and management estimates of the size of the
residential mortgage loan market. These forward-looking statements
are based on UWM’s management’s current expectations, estimates,
projections and beliefs, as well as a number of assumptions
concerning future events. When used in this press release, the
words “estimates,” “projected,” “expects,” “anticipates,”
“forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,”
“will,” “should,” “future,” “propose” and variations of these words
or similar expressions (or the negative versions of such words or
expressions) are intended to identify forward-looking
statements.
These forward-looking statements involve a number of known and
unknown risks, uncertainties, assumptions that could cause actual
results to differ materially from the results discussed in the
forward-looking statements. These risks include (i) UWM’s
dependence on macroeconomic and U.S. residential real estate market
conditions, including changes in U.S. monetary policies that affect
interest rates; (ii) UWM’s reliance on its warehouse facilities;
the risk of a decrease in the value of the collateral underlying
certain of its facilities causing an unanticipated margin call;
(iii) UWM’s ability to sell loans in the secondary market; (iv)
UWM’s dependence on the government sponsored entities such as
Fannie Mae and Freddie Mac; (v) changes in the GSEs’, FHA, USDA and
VA guidelines or GSE and Ginnie Mae guarantees; (vi) UWM’s
dependence on Independent Mortgage brokers to originate mortgage
loans; (vii) the risk that an increase in the value of the MBS UWM
sells in forward markets to hedge its pipeline may result in an
unanticipated margin call; (viii) UWM’s inability to continue to
grow, or to effectively manage the growth of, its loan origination
volume; (ix) UWM’s ability to continue to comply with the complex
state and federal laws regulations or practices applicable to
mortgage loan origination and servicing in general; and (x) other
risks and uncertainties indicated from time to time in the
definitive proxy statement filed by Gores Holdings IV in connection
with Gores Holdings IV’s solicitation of proxies for the Special
Meeting, including those under “Risk Factors” therein. You are
cautioned not to place undue reliance upon any forward-looking
statements, which speak only as of the date made.
About UWM Holdings Corporation and United Wholesale
Mortgage
Headquartered in Pontiac, Michigan, UWM Holdings Corporation
(UWM) is the publicly traded indirect parent of United Wholesale
Mortgage. UWM is the #1 wholesale lender in the nation six years in
a row, providing state-of-the-art technology and unrivaled client
service. UWM is known for its highly efficient, accurate and
expeditious lending support, UWM underwrites and provides closing
documentation for residential mortgage loans originated by
independent mortgage brokers, correspondents, small banks and local
credit unions. UWM's exceptional teamwork and laser-like focus on
delivering innovative mortgage solutions are driving the company's
ongoing growth and its leadership position as the foremost advocate
for mortgage brokers. For more information, visit www.uwm.com or
call 800-981-8898. NMLS #3038.
About Gores Holdings IV, Inc.
Gores Holdings IV was a special purpose acquisition company
sponsored by an affiliate of The Gores Group for the purpose of
effecting a merger, acquisition, or similar business combination.
Gores Holdings IV completed its initial public offering in January
2020, raising approximately $425 million in cash proceeds. Prior
business combinations for special purpose acquisition companies
sponsored by affiliates of The Gores Group include: Hostess (Gores
Holdings, Inc.), Verra Mobility (Gores Holdings II, Inc.), PAE
(Gores Holdings III, Inc.) and Luminar (Gores Metropoulos,
Inc.).
About The Gores Group, LLC
Founded in 1987 by Alec Gores, The Gores Group is a global
investment firm focused on partnering with differentiated
businesses that can benefit from the firm’s extensive industry
knowledge and decades long experience. Gores Holdings IV and The
Gores Group are separate entities with separate management,
although there is overlap in size and industry of target
acquisition and personnel involved. For more information, please
visit www.gores.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210121005895/en/
For inquiries regarding UWM, please contact:
Matt Roslin InvestorRelations@uwm.com
Nicole Yelland Media@uwm.com
OR
Daniel Yunger / Lindsay Gross Kekst CNC
Kekst-UWM@kekstcnc.com
For inquiries regarding The Gores Group and affiliates,
please contact:
Jennifer Kwon Chou Managing Director The Gores Group
310-209-3010 jchou@gores.com
OR
John Christiansen / Cassandra Bujarski Sard Verbinnen & Co
GoresGroup-SVC@sardverb.com
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