Mat Ishbia pledged greater than half of mortgage large UWM Holdings Corp.’s excellent shares to safe loans earlier than shopping for the Phoenix Suns for a document $4 billion.
Ishbia holds his stake via SFS Holding Corp., which owns 94% of UWM’s excellent inventory and pledged the shares, in keeping with the agency’s 2023 proxy assertion.
Ishbia is value $5.5 billion and his fortune dropped by $3.4 billion after the pledged shares have been faraway from his internet value calculation.
Executives of publicly traded corporations will typically pledge shares as collateral, however it’s uncommon for greater than half of their shares to be tied up as collateral. If the share worth goes down, lenders can request further collateral or for the mortgage to be repaid.