Two Harbors (NYSE:TWO) Investment Corp. (NYSE:TWO), a Maryland-based real estate investment trust, announced today the filing of a new prospectus supplement with the Securities and Exchange Commission (SEC). This filing comes as part of an amendment to their existing at-the-market equity offering program (ATM Program), which now allows for the sale of up to 15 million shares of common stock.
The shares, which may be sold through the ATM Program, can be transacted in various ways, including direct sales on the New York Stock Exchange or through market makers. Citizens JMP Securities, LLC, acting as the Placement Agent, will conduct sales based on commercially reasonable efforts and agreed-upon terms with Two Harbors. The Placement Agent is entitled to a commission of up to 2% of the gross proceeds from the sale of shares.
The amendment to the Equity Distribution Agreement with the Placement Agent enables Two Harbors to potentially increase its capital through the sale of additional shares. The company has agreed to indemnify the Placement Agent against certain liabilities, including those under the Securities Act.
This strategic move by Two Harbors comes amidst a period where real estate investment trusts are constantly adapting to market conditions. The amendment was executed to provide the company with flexibility in managing its capital structure and to support its investment strategies.
Two Harbors Investment Corp . specializes in investing, financing, and managing residential mortgage-backed securities and related investments. The company's portfolio includes mortgage servicing rights, commercial real estate, and other financial assets.
The ATM Program's expansion aligns with Two Harbors' ongoing efforts to optimize liquidity and shareholder value. The Placement Agent's existing relationship with Two Harbors, which includes various financial services, is set to continue as they collaborate on the ATM Program's execution.
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