UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 6, 2020
GORES HOLDINGS IV, INC.
(Exact name of registrant as specified in its charter)
Delaware | 001-39189 | 82-2124167 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
9800 Wilshire Blvd. Beverly Hills, CA |
90212 | |
(Address of principal executive offices) | (Zip Code) |
(310) 209-3010
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☒ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencements communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbols |
Name of each exchange on which registered | ||
Class A Common Stock | GHIV | Nasdaq Capital Market | ||
Warrants | GHIVW | Nasdaq Capital Market | ||
Units | GHIVU | Nasdaq Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 | Other Events. |
On November 6, 2020, United Shore Financial Services, LLC d/b/a United Wholesale Mortgage (UWM) released a press release announcing the closing of a private placement of $800 million aggregate principal amount of 5.5% senior notes due 2025 and the intention of Mat Ishbia, controlling stockholder of UWM, to recommend that the board of directors of the post-combination company 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 its proposed business combination with Gores Holdings IV, Inc. (Nasdaq: GHIV, GHIVU, and GHIVW) (the Company), a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
As previously reported, on September 22, 2020, UWM announced it entered into a Business Combination Agreement (the Business Combination Agreement) with the Company and certain other signatories thereto. The transaction is expected to close in the fourth quarter of 2020, subject to regulatory and stockholder approvals, and other customary closing conditions. The combined company will operate under the name UWM Corporation.
Additional Information about the Proposed Business Combination and Where to Find It
On October 2, 2020, the Company filed with the Securities and Exchange Commission (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 once it is available. 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 of the Company to be held to approve the proposed business combination contemplated by the Business Combination Agreement and other matters (the Special Meeting). Company stockholders and other interested persons are advised to read the preliminary proxy statement, as well as any amendments or supplements thereto, and the definitive proxy statement, when available, in connection with the Companys 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 the Companys 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. Company stockholders will also be able to obtain copies of the proxy statement, without charge, once available, at the SECs 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
The Company, UWM and their respective directors and officers may be deemed participants in the solicitation of proxies of Company stockholders in connection with the proposed business combination. Company stockholders and other interested persons may obtain, without charge, more detailed information regarding the directors and officers of the Company in the Companys 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 Company 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 the Company intends to file with the SEC.
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Forward Looking Statements
This Current Report may contain a number of forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning the Company or UWMs possible or assumed future results of operations, business strategies, debt levels, competitive position, industry environment, potential growth opportunities and the effects of regulation, including whether this transaction will generate returns for stockholders. These forward-looking statements are based on the Companys or UWMs managements current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. When used in this Current Report, 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 and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside UWMs managements control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. With respect to forward looking statements relating to the consummation of the proposed business combination, these risks 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, the failure to obtain approval of the stockholders of the Company, the failure to receive required regulatory approval; (b) the ability to meet Nasdaqs listing standards; (c) UWMs 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) UWMs ability to sell loans in the secondary market; (e) UWMs 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) UWMs inability to continue to grow, or to effectively manage the growth of, its loan origination volume; (h) UWMs 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 the Company in connection with the Companys 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 the Company. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.
Forward-looking statements included in this Current Report speak only as of the date of this Current Report. Except as required by law, neither the Company nor UWM undertakes any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this release. Additional risks and uncertainties are identified and discussed in the Companys reports filed with the SEC and available at the SECs website at www.sec.gov.
Disclaimer
This communication is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities pursuant to the proposed business combination or otherwise, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit |
Exhibit | |
99.1 | Press Release dated November 6, 2020. | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Gores Holdings IV, Inc. | ||||||
Date: November 6, 2020 | By: | /s/ Andrew McBride | ||||
Name: | Andrew McBride | |||||
Title: | Chief Financial Officer and Secretary |
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Exhibit 99.1
FOR DISTRIBUTION
UNITED WHOLESALE MORTGAGE ANNOUNCES CLOSING OF
$800 MILLION OF SENIOR NOTES AND INTENTION TO ISSUE A REGULAR ANNUAL
DIVIDEND UPON CLOSING OF BUSINESS COMBINATION
PONTIAC, MI AND LOS ANGELES, CA (November 6, 2020) United Shore Financial Services, LLC d/b/a United Wholesale Mortgage (UWM or the Company) today announced the closing of its previously announced private placement of $800 million aggregate principal amount of 5.5% senior notes due 2025. The transaction resulted in approximately $791 million in net proceeds to UWM. This financing follows the previously announced pending business combination (the Business Combination) with 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).
Mat Ishbia, UWMs president and CEO, stated It is a testament to the strength of our business and the dedication of our team members and clients that UWM has, for five years, been the largest wholesale lender in the residential mortgage industry without previously accessing the capital markets. On the heels of our best quarter in the companys 34 year history, UWM continues to capitalize on this success by establishing access to the unsecured debt market as we also proceed down the path of closing our previously announced business combination with Gores Holdings IV to become a public company UWMC. The two transactions, along with our record earnings, provide UWM diverse sources of capital, a solid fortress balance sheet and the resources to continue to invest in technology, grow the wholesale channel and deliver the fastest, easiest and most efficient mortgage options for consumers.
As a controlling stockholder of UWM Corporation (UWMC) post Business Combination, Mr. Ishbia also announced his intention to recommend that the Board of UWMC 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 business combination with Gores Holdings IV. Mr. Ishbia added: Upon becoming a public company, we intend to 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 Companys consistent and significant free cash flow to enhance stockholder value creation.
Alec Gores, Chairman and Chief Executive Officer of The Gores Group, stated, We believe that this successful senior note offering has reinforced the markets recognition of the impressive organization that Mat and his team have built and will provide them the liquidity to continue to capitalize on growth opportunities in the fast-growing mortgage industry while rewarding stockholders. We strongly support Mats intent to adopt a capital allocation policy at UWMC that includes the issuance of an above-market regular dividend that allows stockholders to benefit from the teams continued success.
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. UWMs exceptional teamwork and laser-like focus on delivering innovative mortgage solutions are driving the companys ongoing growth and its leadership position as the foremost advocate for mortgage brokers.
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, and Mat Ishbia will be a controlling stockholder of 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 firms 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 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 quarters results, with a record date on or shortly after announcement of UWMCs quarterly financial results. The quarterly declaration of dividends will be subject to the discretion of UWMCs Board of Directors, taking into consideration the limitations imposed by UWMCs 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 IVs 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 SECs 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 IVs 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 UWMs balance sheet and liquidity, (c) UWMs belief that such liquidity will be sufficient to fund long-term growth and return to stockholders of UWMC, (d) Mr. Ishbias 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 UWMs or Gores Holdings IVs managements 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 UWMs or Gores Holdings IVs managements 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) UWMs 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) UWMs ability to sell loans in the secondary market; (e) UWMs 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) UWMs inability to continue to grow, or to effectively manage the growth of, its loan origination volume; (h) UWMs 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 IVs 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.
Contacts:
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
For investor 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