Two Harbors Investment Corp. Enters Definitive All-Cash Merger Agreement with CrossCountry Mortgage at $10.80/Share
Summary
Two Harbors Investment Corp. has entered into a definitive agreement to be acquired by CrossCountry Intermediate Holdco, LLC for $10.80 per share in cash, terminating its prior merger agreement with UWM Holdings Corporation.
Key Events
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Definitive Merger Agreement Signed
Two Harbors Investment Corp. (TWO) has entered into a definitive merger agreement to be acquired by CrossCountry Intermediate Holdco, LLC (CCM), an affiliate of CrossCountry Mortgage, LLC.
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All-Cash Consideration for Common Stock
Common stockholders of Two Harbors will receive $10.80 per share in cash. This price is slightly below the current market price of $11.00 per share.
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Prior Merger Agreement Terminated
The previously announced merger agreement with UWM Holdings Corporation was terminated. CrossCountry Mortgage paid the $25.4 million termination fee to UWM on behalf of Two Harbors.
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Preferred Stock Redemption Planned
Holders of Two Harbors' Series A, B, and C Preferred Stock will have their shares redeemed at $25.00 per share, plus any accumulated and unpaid dividends, following the closing of the transaction.
Analysis
Two Harbors Investment Corp. has entered into a definitive merger agreement to be acquired by CrossCountry Intermediate Holdco, LLC, an affiliate of CrossCountry Mortgage, LLC. Under the terms, common stockholders will receive $10.80 per share in cash, which is slightly below the current market price of $11.00. This agreement follows the termination of Two Harbors' prior merger agreement with UWM Holdings Corporation, with CrossCountry Mortgage paying the $25.4 million termination fee on Two Harbors' behalf. The deal aims to create a fully integrated mortgage company by combining CrossCountry's retail origination platform with Two Harbors' mortgage servicing rights portfolio and servicing platform. The transaction, unanimously approved by Two Harbors' Board, is expected to close in the second half of 2026, subject to stockholder and regulatory approvals, and is not contingent on financing. Preferred stockholders will have their shares redeemed at $25.00 per share plus accumulated dividends.
At the time of this filing, TWO was trading at $11.00 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 neutral market sentiment and an importance score of 10 out of 10.