Two Harbors launches upsized $125 million fixed-to-floating cumulative preferreds at 8.125%

By Stephanie N. Rotondo

Seattle, March 7 – Two Harbors Investment Corp. launched $125 million of series A fixed-to-floating rate cumulative redeemable preferred stock at 8.125%, a market source reported on Tuesday.

The deal – announced early Tuesday – was originally slated to be $75 million, with price talk in an 8.125% to 8.25% range.

Morgan Stanley & Co. LLC, UBS Securities LLC and Keefe Bruyette & Woods Inc. are the joint bookrunners. J.P. Morgan Securities LLC is the lead manager.

Dividends will be fixed until April 27, 2027. On that date, the rate will begin floating at Libor plus a spread.

The preferreds become redeemable April 27, 2027, or upon a change of control, at par plus accrued dividends.

The new securities will be listed on the New York Stock Exchange under the ticker symbol “TWOPrA.”

The New York-based real estate investment trust plans to use the proceeds to purchase target assets and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.