UWM Holdings has set a final price of $2 per share for its rights offering, which allows holders of subscription rights to buy up to 200 million shares of its Class A common stock. The offering’s exercise window closes November 12, unless extended.
The price is the minimum under the offering’s formula: the greater of $2 or 85% of the stock’s 10-trading-day volume-weighted average price through November 9. The final price is therefore at the $2 floor.
Key details
- The offering covers up to 200 million shares at $2 each. If all shares are subscribed, UWM could raise up to $400 million in gross proceeds, before expenses.
- Rights expire at 5 p.m. Eastern on November 12, unless UWM extends the offering. Holders must complete their subscriptions before that deadline.
- Holders who exercised rights before November 4 may withdraw their exercise in full—but not partially—by 5 p.m. Eastern on November 10, unless the offering is extended. After that deadline, exercises cannot be revoked.
- UWM may amend, withdraw or terminate the offering with the consent of the backstop purchasers. If it terminates the offering, rights expire without value and subscription funds will be refunded without interest or deduction.
Plain-English implications
If UWM issues the full 200 million shares, the offering could provide up to $400 million in gross proceeds. Shareholders who do not participate could see their ownership percentage diluted if new shares are issued.