Two Harbors plans $75 million sale of fixed-to-floating rate cumulative redeemable preferreds

By Stephanie N. Rotondo

Seattle, March 7 – Two Harbors Investment Corp. is offering $75 million of series A fixed-to-floating rate cumulative redeemable preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Tuesday.

Price talk is 8.125% to 8.25%, according to a market source.

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.

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