Granite Point Mortgage Trust Inc. is selling 10 million shares of common stock in an initial public offering to be priced between $20 and $21 per share.
The newly created real estate investment trust was formed by New York-based Two Harbors Investment Corp. as the exit strategy for its commercial mortgage lending business.
Underwriters have an option to purchase an additional 1.5 million shares. If priced at the upper end, Granite Point's proceeds for the deal will be $241.5 million.
Once the IPO is completed, Granite Point will get $1.75 billion of commercial real estate loans from Two Harbors. In return, Two Harbors will get nearly 33.1 million shares of Granite Point common stock and 1,000 shares of convertible preferred stock.
The preferred stock will be immediately sold to an unaffiliated third-party investor. There is a lock-up agreement for 120 days for the common stock, after which Two Harbors plans to distribute it as a dividend to its own stockholders, a Securities and Exchange Commission filing said.
Granite Point will use the IPO's net proceeds to originate and acquire commercial mortgage loans along with other debt and debt-like commercial real estate investments.