Two Harbors Investment Corp., a REIT with jumbo plans and an additional equity offering in the works, was one of the most actively traded stocks on the NYSE Friday afternoon.
In the morning Two Harbors of Minnetonka, Minn., priced 42 million common shares at $10.15 each, an offering that will raise $426 million before underwriting and other expenses are factored in.
The REIT plans to use the proceeds for general corporate purposes, including financing acquisitions of residential mortgages as well as making additional purchases of MBS. (The company invests in both agency and non-agency RMBS.)
At press time, its shares were trading at $10.25. It was the sixth most active stock on the NYSE with 26 million shares changing hands.
Credit Suisse Securities (USA) LLC is the lead book-running manager.
Barclays Capital Inc., JP Morgan Securities LLC and Wells Fargo Securities LLC are acting as book-running managers. JMP Securities LLC is the co-manager.
Slow-moving efforts to restart the private-label residential mortgage securitization market have gained some momentum recently with players like Two Harbors making more concrete plans and the American Securitization Forum getting closer to a key set of consensus guidelines for the market.
Within a month or so ASF is expected to announce model repurchase provisions, trade group executive director Tom Deutsch told National Mortgage News.
