Home Point Capital's initial public offering could gross sellers over $ 301 million if the deal closes in the expected price range.
The Ann Arbor, Michigan-based company has updated its filing with the Security and Exchange Commission to include the sale of 12.5 million shares as well as an additional option for subscribers of 1.875 million shares priced between US $ 19 and US $ 21. Dollars per share.
The last two companies, Rocket Cos. And Guild Holdings, which went public, however, both slashed and slashed their prices per share. UWM Holdings, which began trading Friday morning, went public through a merger with special purpose vehicle Gores Holdings IV and took over its stock valuation when that transaction closed.
Home Point will not receive any proceeds from the IPO. Upon completion of the transaction, Stone Point Capital affiliates will receive most of the proceeds. They currently own 94% of Home Point's equity. After the IPO, they will control 88.4% of the voting equity (87% if the subscription option is exercised).
Willie Newman, the company's president and CEO, is scheduled to sell 185,966 of the nearly 2.09 million shares he owns of Home Point.
Andrew Bon Salle, who has just joined Home Point from his previous position as head of the Fannie Mae family business, is selling 12,000 shares of his 134,818 shares in the company.
In the prospectus, Bon Salle is listed as the company's CEO. There is a consulting agreement between him and Home Point until December 31, 2022, with automatic extension for one year. Bon Salle receives an annual consultancy fee of $ 500,000 as well as an annual bonus based on performance goals.
After the IPO, Home Point will reserve 6.94 million shares for future issuance under the 2021 Incentive Plan and 1.39 million common shares to be issued under the 2021 Employee Share Purchase Plan.
Home Point also recently had a successful debt sale.
On January 19, Home Point closed a senior notes offering for $ 550 million (up from the announced $ 500 million). The bonds mature in 2026 and have an interest rate of 5%. Up to 50% of the proceeds were used to fund a distribution to the current owners of the company and the remainder to repay an outstanding amount for mortgage service rights.