Two Harbors Enters Definitive Merger Agreement with CrossCountry Mortgage for $10.80/Share Cash, Terminates UWM Deal
TWO sits 24% above its 52-week low of $8.78.
Summary
Two Harbors has signed a definitive agreement to be acquired by CrossCountry Mortgage for $10.80 per share in cash, simultaneously terminating its previous merger agreement with UWM Holdings.
Key Events · M&A and Partnerships · TWO
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Definitive Merger Agreement Signed
Two Harbors Investment Corp. has entered into a definitive merger agreement with CrossCountry Intermediate Holdco, LLC, an affiliate of CrossCountry Mortgage, LLC.
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All-Cash Acquisition at $10.80 Per Share
Each outstanding share of Two Harbors common stock will be converted into the right to receive $10.80 in cash. This is a premium over the previously reported unsolicited offer of $10.70 per share.
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Termination of UWM Merger Agreement
The company terminated its previously announced merger agreement with UWM Holdings Corporation. The special meeting of stockholders for the UWM merger has been canceled.
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Acquirer Pays Termination Fee
CrossCountry Mortgage, on behalf of Two Harbors, agreed to pay the $25.4 million termination fee to UWM Holdings Corporation.
Analysis · TWO · Real Estate & Construction
This 8-K announces a definitive merger agreement where Two Harbors Investment Corp. will be acquired by CrossCountry Intermediate Holdco, LLC for $10.80 per common share in cash. This transaction follows the company's board deeming a prior unsolicited offer superior and simultaneously terminates the existing merger agreement with UWM Holdings Corporation. The new acquirer, CrossCountry Mortgage, will pay the $25.4 million termination fee to UWM. This all-cash deal provides certainty and a premium to common shareholders, resolving the prior merger uncertainty and creating a fully integrated mortgage company spanning origination through servicing.
At the time of this filing, TWO was trading at $10.91 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $8.78 to $14.17. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.