[Bloomberg] Mortgage Giant’s Slide Puts Phoenix Suns Owner’s Wealth in Focus
UWM shares fell by as much as 49% after the company suspended its quarterly dividend and announced new financing from Oaktree Capital Management.
Ishbia’s net worth has fallen by more than half to $6.2 billion since its peak, and he has pledged interests in his private equity business and future distributions from his basketball team to secure loan facilities with JPMorgan Chase & Co.
As for the Suns, which were profitable before Ishbia purchased the team, the franchise lost money in his first season as controlling owner, according to court documents. Any future dividends or distributions, as well as any potential proceeds from a bankruptcy or insolvency, have been pledged as collateral to secure a loan from JPMorgan, according to a Delaware UCC filing.
It’s unclear from filings whether the Suns’ interests were linked to the lending facilities backed by Ishbia’s UWM shares.
“JPMorgan did not request additional collateral from Mat Ishbia after last week’s selloff,” a spokesperson for the bank said in a statement.