New York, Nov. 16 – Two Harbors Investment Corp. priced $275 million of 7.25% series C fixed-to-floating rate cumulative redeemable preferred stock, according to a news release.
The preferreds will pay dividends at a fixed rate until Jan. 27, 2025, at which time the dividends will switch to a floating rate of Libor plus 501.1 basis points.
Morgan Stanley & Co. LLC, UBS Securities LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC are bookrunners.
There is a greenshoe for an additional $41.25 million of the preferreds.
The preferreds can be redeemed starting on Jan. 27, 2025 at par.
Two Harbors said it intends to apply to list the securities on the New York Stock Exchange under the symbol “TWO PrC.”
Proceeds will be used to purchase the company’s target assets, including residential mortgage-backed securities, mortgage servicing rights and other financial assets, and for general corporate purposes.
Two Harbors is a New York-based real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights and other financial assets. It is externally managed and advised by PRCM Advisers LLC, a wholly owned subsidiary of Pine River Capital Management LP.
| Issuer: | Two Harbors Investment Corp.
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| Issue: | Series C fixed-to-floating rate cumulative redeemable preferred stock
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| Amount: | $275 million
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| Greenshoe: | $41.25 million
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| Dividend: | 7.25% initial, starting Jan. 27, 2025 floats at Libor plus 501.1 bps
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| Par: | $25.00
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| Call: | Jan. 27, 2025 at par
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| Bookrunners: | Morgan Stanley & Co. LLC, UBS Securities LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC
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| Pricing date: | Nov. 16
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| Settlement date: | Nov. 27
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| Distribution: | Off shelf
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| Listing: | NYSE: TWO PrC (expected)
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