UWM Proposes $12.00 Buyout Backed by $1.3B Bridge Facility
UWM pitched a fully financed $12.00 per share bid for Two Harbors, backed by a committed $1.3 billion bridge facility from Mizuho Bank with no ratings triggers, borrowing-base tests or market contingencies. UWM stated its offer exceeds CrossCountry’s $11.30 transaction and accused the board of blocking superior shareholder value.
1. Offer Terms
UWM submitted a $12.00 per share acquisition proposal to Two Harbors Investment, offering both cash and a stock option that exceeds the rival CrossCountry Mortgage deal priced at $11.30 per share.
2. Board Rejection Response
UWM criticized the Two Harbors board for rejecting the higher offer, labeling the board’s valuation arguments as illogical and depriving shareholders of the opportunity to receive significantly higher value.
3. Financing Details
The $12.00 offer is supported by a committed $1.3 billion unsecured bridge facility from Mizuho Bank without ratings triggers, borrowing-base tests or market contingencies, and Mizuho has waived customary due diligence conditions to facilitate closing.
4. Next Steps
UWM is evaluating strategic options to compel the Two Harbors board to engage fairly and encourage shareholders to vote in favor of the superior bid before proceeding with the CrossCountry transaction.