Two Harbors Investment Corp. Announces Proposed Contribution of Its Commercial Real Estate Assets to Granite Point Mortgage T...
May 24 2017 - 6:35AM
Business Wire
Two Harbors Investment Corp. (NYSE: TWO), a
leading hybrid mortgage real estate investment trust, today
announced its intention to contribute its portfolio of commercial
real estate assets to Granite Point Mortgage Trust Inc. (“Granite
Point”), a Maryland corporation.
Granite Point was formed by Two Harbors in order to continue and
expand the commercial real estate lending business established by
Two Harbors. Granite Point will focus on directly originating,
investing in and managing a portfolio of commercial real estate
loans and other debt and debt-like instruments secured by
institutional quality commercial properties managed by experienced
owners in attractive markets across the United States. Granite
Point will be externally managed by Pine River Capital Management
L.P., which is the parent company of Two Harbors’ external
manager.
Granite Point has filed a registration statement with the U.S.
Securities and Exchange Commission with respect to a proposed
initial public offering (“IPO”) of its common stock. The
contribution of the portfolio of commercial real estate assets to
Granite Point is expected to occur simultaneously with the closing
of the IPO. In exchange for its contribution, Two Harbors would
receive shares of common stock of Granite Point. The number of
shares it receives will be dependent upon the value of the
portfolio and other assets being contributed to Granite Point and
the amount of capital raised in the proposed IPO. Subject to the
approval of its Board of Directors and compliance with applicable
securities laws, Two Harbors anticipates that it would distribute
its shares of Granite Point common stock by means of a special
dividend after the expiration of a customary lock-up period
following the completion of Granite Point’s proposed IPO.
The Board of Directors of Two Harbors has formed a committee of
independent directors to review, negotiate and approve the proposed
transaction. The committee has retained Freshfields Bruckhaus
Deringer LLP as its legal counsel and Credit Suisse as its
financial adviser with respect to the proposed contribution and to
represent the interests of Two Harbors and its stockholders with
respect to the proposed transaction. The contribution remains
subject to the approval of the committee and Two Harbors’ Board of
Directors, finalization of all relevant documentation on terms
acceptable to Two Harbors and the committee, the satisfaction of
all conditions to the closing of the transaction, Securities and
Exchange Commission clearance and market conditions.
This press release does not constitute an offer of any
securities for sale.
Conference Call
Two Harbors will host a conference call on May 24, 2017 at
8:30am EDT to discuss this announcement. To participate in the
teleconference, please call toll-free (877) 868-1835, Conference
Code 29256097, (or (914) 495-8581 for international callers)
approximately 10 minutes prior to the above start time. You may
also listen to the teleconference live via the Internet at
www.twoharborsinvestment.com in the Investor Relations section
under the Events and Presentations link.
Two Harbors Investment Corp.
Two Harbors Investment Corp., a Maryland corporation, is a real
estate investment trust that invests in residential mortgage-backed
securities, mortgage servicing rights, commercial real estate and
other financial assets. Two Harbors is headquartered in New York,
New York, and is externally managed and advised by PRCM Advisers
LLC, a wholly owned subsidiary of Pine River Capital Management
L.P. Additional information is available at
www.twoharborsinvestment.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995, including with
respect to the completion of the contribution, the IPO and the
distribution of shares of Granite Point common stock to Two Harbors
stockholders. Actual results may differ from expectations,
estimates and projections and, consequently, readers should not
rely on these forward-looking statements as predictions of future
events. Words such as “expect,” “target,” “assume,” “estimate,”
“project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,”
“may,” “will,” “could,” “should,” “believe,” “predicts,”
“potential,” “continue,” and similar expressions are intended to
identify such forward-looking statements. These forward looking
statements involve significant risks and uncertainties that could
cause actual results to differ materially from expected
results.
Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
Two Harbors does not undertake or accept any obligation to release
publicly any updates or revisions to any forward-looking statement
to reflect any change in its expectations or any change in events,
conditions or circumstances on which any such statement is based.
Additional information concerning these and other risk factors is
contained in Two Harbors’ most recent filings with the Securities
and Exchange Commission. All subsequent written and oral forward
looking statements concerning Two Harbors or matters attributable
to Two Harbors or any person.
Additional Information
Stockholders of Two Harbors and other interested persons may
find additional information regarding the company at the Securities
and Exchange Commission’s Internet site at www.sec.gov or by
directing requests to: Two Harbors Investment Corp., 590 Madison
Avenue, 36th floor, New York, NY 10022, telephone 612-629-2500.
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version on businesswire.com: http://www.businesswire.com/news/home/20170524005595/en/
Two Harbors Investment Corp.Investors:Tim Perrott,
612-629-2514Senior Director of Investor
Relationstim.perrott@twoharborsinvestment.com
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