Gores Holdings IV, Inc. ("Gores Holdings IV") (NASDAQ CM: GHIV,
GHIVU, AND GHIVW), a special purpose acquisition company sponsored
by an affiliate of The Gores Group, LLC ("The Gores Group" or
"Gores"), today announced United Wholesale Mortgage’s ("UWM" or the
"Company") intention to adopt a policy of issuing a regular annual
dividend of $0.40 per share as part of its capital allocation
strategy following the consummation of the previously announced
pending business combination with Gores Holdings IV (the “Business
Combination”).
Alec Gores, Chairman and Chief Executive Officer of The Gores
Group, stated, "Given UWM’s free cash flow and solid balance sheet,
we strongly support the Company’s intent to adopt a capital
allocation policy that includes the issuance of an above-market
regular dividend that allows stockholders to benefit from the
team's continued success."
Mat Ishbia, UWM's president and CEO, stated, "As the largest
wholesale lender in the residential mortgage industry and on the
heels of our best quarter in the company's 34 year history, our
intent to issue a dividend following our business combination with
Gores Holdings IV demonstrates both our steadfast commitment to
creating value for our stockholders and our ongoing belief that UWM
is well-positioned for the future. As I noted in our announcement
last week, upon becoming a public company, we will continue to
manage toward the long term by investing in our business as we have
always done in the past, but we also intend to leverage the
Company's consistent and significant free cash flow to enhance
stockholder value creation."
Founded in 1986 and based in Pontiac, Michigan, UWM is the
largest wholesale mortgage originator in the United States with
nearly 7,000 dedicated team members. UWM’s differentiated business
model focuses exclusively on providing wholesale mortgage clients
superior service through proprietary technology that enables them
to process mortgage applications at faster speeds and provide lower
rates than competitors.
About Gores Holdings IV, Inc.
Gores Holdings IV is 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 recently announced Luminar (Gores
Metropoulos, Inc.). Upon the closing of the Business Combination,
Gores Holdings IV will change its name to UWM Corporation
(“UWMC”).
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.
About United Wholesale Mortgage
Headquartered in Pontiac, Michigan, United Wholesale Mortgage is
the #1 wholesale lender in the nation five years in a row. UWM
provides Independent Mortgage Advisors, across all 50 states and
the District of Columbia, with a unique set of innovative
technologically driven tools and a value proposition that enables
them to offer borrowers compelling financing alternatives. 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.
About the Dividend Policy
Regular annual dividends are expected to be declared and paid
quarterly starting in the first quarter following consummation of
the Business Combination, based on the preceding quarter's results,
with a record date on or shortly after announcement of UWMC's
quarterly financial results. The quarterly declaration of dividends
will be subject to the discretion of UWMC's Board of Directors,
taking into consideration the limitations imposed by UWMC's
governing documents, contractual obligations and other requirements
of applicable corporate law.
Additional Information about the Business Combination and
Where to Find It
Gores Holdings IV has filed with the SEC a preliminary proxy
statement in connection with the proposed Business combination
contemplated by the Business Combination Agreement and will mail a
definitive proxy statement and other relevant documents to its
stockholders. The definitive proxy statement will contain important
information about the proposed Business Combination contemplated by
the Business Combination Agreement and the other matters to be
voted upon at a meeting of stockholders to be held to approve the
proposed Business Combination contemplated by the Business
Combination Agreement and other matters (the "Special Meeting").
Gores Holdings IV stockholders and other interested persons are
advised to read, when available, the preliminary proxy statement,
as well as any amendments or supplements thereto, and the
definitive proxy statement in connection with Gores Holdings IV's
solicitation of proxies for the Special Meeting because they will
contain important information about the proposed Business
Combination. When available, the definitive proxy statement will be
mailed to Gores Holdings IV stockholders as of a record date to be
established for voting on the proposed Business Combination
contemplated by the Business Combination Agreement and the other
matters to be voted upon at the Special Meeting. Gores Holdings IV
stockholders will also be able to obtain copies of the proxy
statement, without charge, once available, at the SEC's website at
www.sec.gov or by directing a request to: Gores Holdings IV, Inc.,
9800 Wilshire Boulevard, Beverly Hills, CA 90212, attention:
Jennifer Kwon Chou (jchou@gores.com).
Participants in Solicitation
Gores Holdings IV, Luminar and their respective directors and
officers may be deemed participants in the solicitation of proxies
of Gores Holdings IV stockholders in connection with the proposed
Business Combination. Gores Holdings IV stockholders and other
interested persons may obtain, without charge, more detailed
information regarding the directors and officers of Gores Holdings
IV in Gores Holdings IV's Annual Report on Form 10-K for the fiscal
year ended December 31, 2019, which was filed with the SEC on March
27, 2020. Information regarding the persons who may, under SEC
rules, be deemed participants in the solicitation of proxies to
Gores Holdings IV stockholders in connection with the proposed
Business Combination contemplated by the Business Combination
Agreement and other matters to be voted upon at the Special Meeting
will be set forth in the proxy statement for the proposed Business
Combination when available. Additional information regarding the
interests of participants in the solicitation of proxies in
connection with the proposed Business Combination will be included
in the proxy statement that Gores Holdings IV files with the
SEC.
Forward Looking Statements
This press release may contain a number of "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements include statements
regarding (a) the use of the net proceeds of the note offering, (b)
the impact of the net proceeds on UWM's balance sheet and
liquidity, (c) UWM's belief that such liquidity will be sufficient
to fund long-term growth and return to stockholders of UWMC, (d)
Mr. Ishbia's intent to request that UWMC adopt the referenced
dividend policy; and (e) expectations regarding the timing and size
of future dividends. These forward-looking statements are based on
UWM's or Gores Holdings IV'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 are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside UWM's or Gores Holdings IV's
management's control, that could cause actual results to differ
materially from the results discussed in the forward-looking
statements. These risks, uncertainties, assumptions and other
important factors include, but are not limited to: (a) the
occurrence of any event, change or other circumstances that could
give rise to the termination of the Business Combination Agreement
and the proposed Business Combination contemplated thereby,
including due to the failure to obtain approval of the stockholders
of Gores Holdings IV or to satisfy other conditions to closing in
the Business Combination Agreement; (b) the impact of macroeconomic
and U.S. residential real estate market conditions, including
changes in U.S. monetary policies that affect interest rates; (c)
UWM's reliance on its warehouse facilities and the risk of a
decrease in the value of the collateral underlying certain of its
facilities causing an unanticipated margin call; (d) UWM's ability
to sell loans in the secondary market; (e) UWM's dependence on the
government sponsored entities such as Fannie Mae and Freddie Mac;
(f) 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; (g) UWM's inability to continue to grow,
or to effectively manage the growth of, its loan origination
volume; (h) UWM's ability to continue to attract and retain its
Independent Mortgage Advisor relationships; and (i) other risks and
uncertainties indicated from time to time in the preliminary 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, and other documents
filed or to be filed with the SEC by Gores Holdings IV. You are
cautioned not to place undue reliance upon any forward-looking
statements, which speak only as of the date made.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201109005371/en/
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
For inquiries regarding UWM, please contact:
Nicole Yelland Public Relations Strategist United Wholesale
Mortgage 800-981-8898 ext. 4815 nyelland@uwm.com
Investor Relations InvestorRelations@uwm.com
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