NEW YORK–(BUSINESS WIRE)–Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR mortgage real estate investment trust, today announced that its Board of Directors has approved third quarter 2022 common and preferred stock dividends and a 1:4 reverse stock split of the Company’s common stock.
Third Quarter Common and Preferred Stock Dividends
Two Harbors announced a dividend of $0.17 per common share for the third quarter of 2022. The dividend for the third quarter is payable on October 28, 2022 to common shareholders of record at the close of business on October 3, 2022.
Two Harbors also declared the following preferred stock dividends today:
a dividend of $0.50781 per share of 8.125% cumulative Series A Redeemable Preferred Stock;
a dividend of $0.47656 per share on the 7.625% Series B cumulative redeemable preferred stock; and
a dividend of $0.45313 per share of Series C 7.25% cumulative redeemable preferred stock.
The Series A, Series B and Series C Preferred Dividends are payable on October 27, 2022 to the relevant preferred shareholders of record at the close of business on October 12, 2022.
1:4 reverse stock split
The reverse stock split is expected to occur on November 1, 2022 at 5:01 p.m. Eastern time (the “Effective Time”). At the Effective Date, every four issued and outstanding common shares of the Company will convert into one common share. In addition, the number of authorized common shares will be reduced from 700 million to 175 million. The par value of each common share will remain unchanged. At market open on November 2, 2022, the Company’s common shares will continue to trade on the NYSE under the symbol “TWO” but will receive a new CUSIP number. The Company’s Board of Directors believes that the increase in the market price per share of the Company’s common stock through the reverse stock split may broaden the pool of potential investors and thereby potentially improve the market for and liquidity of the Company’s common stock.
No fractional shares will be issued in connection with the reverse stock split. Instead, each shareholder of record holding fractional shares is entitled to receive cash in lieu of such fractional shares in an amount determined based on the volume weighted average price of the Company’s common shares on the NYSE as of November 1, 2022. The reverse stock split will apply to all authorized and outstanding common shares of the Company as of the Effective Date. Shareholders of record will receive information from Equiniti Trust Company, the company’s transfer agent, regarding their shareholdings after the reverse stock split and cash payments in lieu of partial payments, if any. Shareholders holding their shares in broker accounts need not take any action in connection with the reverse stock split.
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including the one-for-four reverse stock split of Two Harbors common stock. Actual results may differ from expectations, estimates and projections and readers should therefore not rely on these forward-looking statements as predictions of future events. Words like “expect”, “aim”, “assume”, “estimate”, “forecast”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “can”, “will”, ” “Could”, “should”, “believes”, “projected”, “potential”, “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from anticipated results.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Two Harbors undertakes no obligation and assumes no obligation to publicly release any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information regarding these and other risk factors is contained in Two Harbors’ most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements relating to Two Harbors or matters attributable to Two Harbors or any other person.
Two Harbors Investment Corp.
Two Harbors Investment Corp., a Maryland company, is a real estate mutual trust that invests in mortgage-backed securities, mortgage servitudes and other financial assets. Two Harbors is headquartered in St. Louis Park, MN.
Two Harbors stockholders and other interested parties may find additional information about the company at www.twoharborsinvestment.com, the Securities and Exchange Commission’s website at www.sec.gov, or direct inquiries to: Two Harbors Investment Corp., 1601 Utica Ave S., Suite 900, St. Louis Park, MN, 55416, phone 612-453-4100.