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UWM Holdings Corporation has closed the issuance of $1 billion in senior notes, an oversubscribed transaction that comes just two months before the maturity of its existing notes. The company initially planned to issue $600 million.
Proceeds, due November 15, will be used to repay $800 million in senior notes that carry a 5.5% coupon, to pay down mortgage servicing rights (MSR) facilities, and UWM will apply the remainder for general working capital, according to a filing with the Securities and Exchange Commission (SEC).
The new senior notes, due 2031, carry a 6.250% coupon and are guaranteed on a senior unsecured basis by United Wholesale Mortgage, the company’s mortgage lending and servicing arm. They rank pari passu with UWM’s existing senior unsecured notes.
The offering was limited to qualified institutional buyers.
Rami Hasani, UWM’s chief financial officer since April, said during an earnings call with analysts in August that the company was assessing and evaluating “the opportunistic refinancing of our $800 million unsecured notes maturing in November of 2025.”
“Given the current market conditions and strong investor demand for our last offering, we expect a favorable outcome in refinancing these notes,” Hasani said during the call.
UWM last tapped the debt markets in December 2024, raising $800 million — 60% above its initial target. As of the second quarter, UWM reported total non-funding debt of $3.3 billion, with a debt-to-equity ratio of 1.9. The company’s liquidity stood at $2.2 billion, including $490 million in cash.
Other mortgage firms that have recently announced debt issuances include Pennymac, Rocket Companies, Better Home & Finance Holding Co., Rithm Capital and Planet Financial Group.
