Mat Ishbia Nears 99% Suns Stake as UWM Stock Slides 70% After $600 Million Loss
Updated
Updated · Huddle Up | Joe Pompliano · Aug 19
Mat Ishbia Nears 99% Suns Stake as UWM Stock Slides 70% After $600 Million Loss
1 articles · Updated · Huddle Up | Joe Pompliano · Aug 19
Summary
Bloomberg reported this week that Ishbia is finalizing a deal to buy out the remaining Phoenix Suns and Mercury shareholders, lifting his ownership stake to 99%.
UWM's shares have fallen about 70% since Ishbia pledged 805 million shares to JPMorgan to help finance the Suns' $4 billion purchase in 2023, fueling scrutiny over potential margin-call pressure.
Earlier this month, UWM posted a $600 million loss tied to a failed acquisition and rate hedge, then secured a $1.5 billion Oaktree investment, added $150 million from Ishbia's holding company and launched a $400 million rights offering.
UWM also suspended its quarterly dividend, sending the stock down another 35% in a day, but recent filings indicate Ishbia's loan collateral may also include future Suns distributions and part of his private-equity portfolio.
UWM said the balance on Ishbia's loans is low enough to be repaid at any time, suggesting the immediate risk is a costly turnaround at the mortgage lender rather than a forced sale of his sports holdings.