Finally we have a new issue being sold today with mortgage REIT Two Harbors Investment announcing they will be selling a new $25 note issue.
This issue which is likely to be high yield has a shorter optional redemption date of 5/15/2027 with a final maturity in 2030.
The use of proceeds mentions that they company may use the proceeds to redeem their 6.25% senior notes due 2026. The company has 3 fixed to floating preferreds outstanding.
The preliminary prospectus can be read here.
Thanks to J for catching this one and for Jerrymac chiming in with yield talk in the 9.50% area.
Came across this on X and figured I’d pass it along here. This person claims Two Harbors will be found liable for “in excess of $144mm” in damages related to its lawsuit vs Pine River.
https://x.com/jimdelisle/status/1920072505261264960
https://x.com/jimdelisle/status/1919771841888989468
https://x.com/jimdelisle/status/1920084324306636841
(disclaimer: no idea on the accuracy of the claims presented. As always, best to do one’s own DD)
IMO, he is a credible source.
He used to work in the industry, so he knows the players. He has a healthy dose of skepticism, but it’s usually warranted.
Tigerbond ! Funny you should show up! I was thinking about you 2 days ago and looked you up on that other site. You have a lot of insightful things you have said about other stocks , some of which have been discussed here.
Thanks for sharing.
I’ve not paid much attention to this one. On first blush, it seems cheap, doesn’t it? When the original price talk was at 9.50, my first thought was that it would probably be priced way thru that, but it’s not. So what are the proper comparisons to justify this as the right price? Obviously I don’t do much in the mREIT field, but when I look at where the preferreds trade, this seems out of line cheap.
I think it’s a generous rate compared to what TWO-A/B are now paying. Unless you think they are overpriced, which they may be. If they don’t drop on the news I would buy the new one near par though it may sell higher.
2white.. check out litigation risk in the disclosures. Lots of drama and in fighting.. likely $100M+ payment. I imagine this bumped up the rate slightly.
TWOD priced at 9.375%
https://www.sec.gov/Archives/edgar/data/1465740/000110465925045123/tm2513870d3_fwp.htm
Using preferred equity to replace a bond issue. They seem to be comfortable paying a higher coupon so they can flip off the payment switch on this and the other preferred if they need too.
legend. vs,
TWOD is a baby bond, not preferred equity.
Weird time to issue a new one. I used to trade them, sold out when the prrice got too high. Bought back low in March downturn sold most of that already.
I own those 6.25% 2026 Notes . Hoped to hold those to maturity