16 Nov, 2021

United Wholesale Mortgage prices senior notes at par to yield 5.75%; terms

United Wholesale Mortgage LLC on Nov. 15 priced a $500 million offering of 5.75% 5.5-year senior notes via joint bookrunners J.P. Morgan, BofA Securities, Goldman Sachs and UBS, according to market sources.

Proceeds will be used for general corporate purposes.

United Wholesale Mortgage is an indirect subsidiary of UWM Holdings Corp., the largest wholesale mortgage lender and the second-largest direct residential mortgage lender in the United States. Fitch on Oct. 26 affirmed the BB- rating on United Wholesale Mortgage and upgraded the unsecured debt rating to BB-, from B+.

“The ratings continue to reflect a strong financial profile with improved profitability, capitalization and liquidity, solid asset quality of the servicing portfolio, a robust and integrated technology platform, and an experienced management team with extensive industry background,” Fitch said.

Terms:

Issuer United Wholesale Mortgage LLC
Ratings Ba3/BB- (Moody's/Fitch)
Amount $500 million
Issue Senior notes (144A/Reg S for life)
Coupon 5.75%
Price 100
Yield 5.75%
Spread T+443
Maturity June 15, 2027
Call Non-call 2.5 (first call at 102.875% on June 15, 2024; then 101.438% on June 15, 2025; then par on June 15, 2026, and thereafter)
Trade (date) Nov. 15, 2021
Settle Nov. 22, 2021
Joint bookrunners JPM/BofA/GS/UBS
Co-managers C/DB/JMP/KBW/MS/PiperSandler/Wedbush
Price talk 5.625%-5.75%; 5.75% area initial price thoughts
Notes Up-to-40% equity claw at 105.75% prior to June 15, 2024; make-whole at T+50 prior to June 15, 2024; change of control put at 101%.