Two Harbors greenshoe exercise lifts convertibles to $287.5 million

Chicago, Feb. 1 – Underwriters for Two Harbors Investment Corp.’s 6.25% five-year convertible notes exercised their option to purchase an additional $37.5 million of notes, lifting the size of the offering to $287.5 million, according to a press release on Monday.

As previously reported, the notes priced with an initial conversion premium of 20% on Jan. 27.

J.P. Morgan Securities LLC, Barclays and RBC Capital Markets LLC were bookrunners for the registered offering.

The notes are non-callable.

The convertibles are putable upon a fundamental change.

There is dividend protection above 17 cents a quarter.

Proceeds will be used to repurchase the company’s 6.25% convertible notes due 2022 in open market or privately negotiated transactions. Remaining proceeds will be used for general corporate purposes.

Two Harbors is a Minnetonka, Minn.-based real estate investment trust.

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