(By Balaseshan) Two Harbors Investment Corp. (NYSE:TWO), a real estate investment trust (REIT), said it has priced a public offering of 50 million shares at $10.44 apiece, a 2.6% discount to previous closing price.
Total gross proceeds before underwriting discount and commissions and estimated expenses is expected to be about $522.0 million. The offering is expected to close on or about July 18, 2012.
The company has granted the underwriters an option for 30 days to purchase up to an additional 7.5 million shares of its common stock to cover over-allotments, if any.
Two Harbors expects to use the net proceeds from this offering to make additional acquisitions of residential mortgage-backed securities, residential mortgage loans, and residential real properties and for other general corporate purposes.
Credit Suisse Securities (USA) LLC acted as the lead book-running manager for the offering. Barclays Capital Inc. and J.P. Morgan Securities LLC acted as book-running managers. JMP Securities LLC and Keefe, Bruyette & Woods, Inc. acted as co-managers.
From May 25, 2012 to July 11, 2012, the company sold 7.58 million shares of its common stock pursuant to at-the-market offering program for net proceeds of about $77.6 million, after deducting sales agent compensation and estimated offering expenses.
The company's charter provides that it might issue up to 450 million shares of common stock, and 50 million shares of preferred stock. As of July 11, 2012, 221.84 million shares of common stock were issued and outstanding and 33.249 million warrants to purchase up to 33.249 million shares of common stock were issued and outstanding.
TWO is trading down 1.03% at $10.61 on Friday. The stock has been trading between $7.72 and $10.96 for the past 52 weeks.