Two Harbors Investment falls on $178 mln equity raise

Two Harbors Investment

03/02/2023 12:59

** Two Harbors Investment Corp's  TWO.N  shares down ~4%
premarket after overnight follow-on prices
    ** Mortgage REIT sells 10 mln shares for $178 mln raise
    ** Offering prices at $17.80, 3.9% discount to last sale
    ** Co to use net offering proceeds to buy target assets,
including residential mortgage-backed securities, mortgage
servicing rights
    ** Last month, co estimated its book value/sh was
$17.70–$17.74 at end-Dec
    ** Co has ~86 mln shares outstanding after completing
1-for-4 reverse stock split in Nov
    ** Shares up ~17% YTD through Thurs close and have gained
~38% over the past three months
    ** Goldman Sachs, JP Morgan and Citigroup acting as joint
bookrunners for offering
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))