Two Harbors Investment Corp. (NYSE: TWO), a mortgage servicing rights-focused real estate investment trust, has canceled its previously announced merger with UWM Holdings Corporation (NYSE: UWMC) and announced a merger agreement with CrossCountry Mortgage.
Under the terms of the agreement, CrossCountry will acquire all of Two Harbors’ outstanding shares of common stock for $10.80 per share in cash. CrossCountry will also pay a termination fee of $25.4 million to UWM in accordance with the terms of its now-defunct merger agreement.
Prior to the closing of the merger, Two Harbors said it will pay regular quarterly dividends up until the quarter in which the closing occurs. Upon completion of the transaction, Two Harbors will become a wholly owned subsidiary of CrossCountry and will cease to be a publicly traded company.
Ron Leonhardt, founder and CEO of CrossCountry Mortgage, stated, “This transaction further solidifies CCM’s position as a one-of-one player in the mortgage market, with the #1 retail origination platform for the third year in a row and the #6 non-bank servicing platform with over $370 billion in unpaid principal balance.”
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