Two Harbors Enters Definitive All-Cash Merger Agreement with CrossCountry Mortgage for $10.80/Share

summarizeSummary

Two Harbors Investment Corp. has entered into a definitive agreement to be acquired by CrossCountry Intermediate Holdco, LLC for $10.80 per share in an all-cash transaction, terminating a prior stock-based merger agreement with UWM Holdings Corporation.

check_boxKey Events

• Definitive Merger Agreement Signed

  Two Harbors Investment Corp. has entered into a definitive agreement to be acquired by CrossCountry Intermediate Holdco, LLC for $10.80 per share in an all-cash transaction.

• Prior Merger Agreement Terminated

  The company terminated its previous all-stock merger agreement with UWM Holdings Corporation, which had an implied value below the current cash offer.

• Shareholder Vote Required

  Common stockholders will hold a special meeting to vote on the merger, which the Board unanimously recommends for approval.

• Financing Secured

  CrossCountry Mortgage has secured a $2 billion secured loan facility, and the merger is not subject to any financing contingencies.

auto_awesomeAnalysis

This PREM14A filing announces a definitive all-cash merger agreement for Two Harbors Investment Corp. to be acquired by CrossCountry Intermediate Holdco, LLC for $10.80 per share. This transaction replaces a previously announced, lower-valued all-stock merger agreement with UWM Holdings Corporation, which was terminated on March 27, 2026. While the $10.80 cash offer was considered a "Superior Proposal" by the Board at the time of negotiation (March 26, 2026), the current market price of Two Harbors' common stock is trading above the offer price, suggesting that investors may anticipate a higher bid or believe the company's standalone value is greater. The deal provides certainty of value and liquidity for common stockholders, backed by secured financing from CrossCountry Mortgage. The Board unanimously recommends the merger. Investors should monitor the shareholder vote and any potential counter-offers, given the current market premium to the offer price.