Two Harbors’ 7.625% fixed-to-floating preferreds admitted to NYSE

By Stephanie N. Rotondo

Seattle, July 21 – Two Harbors Investment Corp.’s $250 million of 7.625% series B fixed-to-floating rate cumulative redeemable preferred stock listed on the New York Stock Exchange on Friday, according to a market source.

The ticker symbol is “TWOPrB.”

Initial price talk on the deal that priced on July 12 was 7.75%. The size of the deal was increased from an expected $75 million.

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

There is a $37.5 million over-allotment option.

Dividends will be payable on a quarterly basis. The rate will be fixed through July 27, 2027 and will float at Libor plus 535.2 basis points 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 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.

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