Two Harbors Investment offering $75 million of fixed-to-floating cumulative preferreds at 7.75%

By Stephanie N. Rotondo

Seattle, July 12 – Two Harbors Investment Corp. intends to price at least $75 million of series B fixed-to-floating rate cumulative redeemable preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Wednesday.

Price talk is 7.75%, according to a market source.

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

Dividends will be payable on a quarterly basis. The rate will be fixed through July 27, 2027 and will float at Libor plus a spread after that date.

The preferreds become redeemable July 27, 2027 at par plus accrued dividends. Prior to that date, the company can redeem the issue only to maintain its real estate investment trust status or upon a change of control.

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

The New York-based company plans to use the proceeds to purchase target assets, including residential mortgage-backed securities, mortgage servicing rights and other financial assets. The funds may also be used 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.