NEW YORK--(BUSINESS WIRE)--
Two Harbors Investment Corp. (Two Harbors Investment Corp. (TWO) (“Two Harbors”) today declared an interim third quarter 2018 common stock dividend of $0.158370 per share. The interim dividend is payable on July 30, 2018 to common stockholders of record at the close of business on July 25, 2018.
Summary
- The interim dividend of $0.158370 per share represents a partial payment of Two Harbors’ regular third quarter 2018 common stock dividend, which is expected to be $0.47 per share
- Two Harbors expects the remaining $0.311630 per share portion of its regular third quarter common stock dividend to be declared in the ordinary course in September 2018
- As previously announced, Two Harbors anticipates that a regular quarterly common stock dividend of $0.47 per share will be sustainable throughout the remainder of 2018, subject to market conditions and the discretion and approval of its Board of Directors
Interim Dividend Requirement
The interim third quarter dividend is being made pursuant to the terms of the previously announced Agreement and Plan of Merger, dated as of April 25, 2018, by and among Two Harbors, Eiger Merger Subsidiary LLC (“Merger Sub”) and CYS Investments, Inc. (“CYS”) (the “Merger Agreement”), pursuant to which Merger Sub will merge with and into CYS, with CYS continuing as the surviving corporation (the “Merger”). As a result of the Merger, the surviving corporation will become an indirect, wholly owned subsidiary of Two Harbors. Under the Merger Agreement, the common stockholders of Two Harbors are entitled to receive a partial payment of the current quarter’s dividend prior to the anticipated closing date of the Merger. This interim dividend payment was calculated based on (a) the per share amount of Two Harbors’ most recent quarterly dividend, multiplied by (b) the quotient of (i) the number of days elapsed since Two Harbors’ last dividend record date through and including the day prior to the expected July 31, 2018 closing date of the Merger, divided by (ii) the actual number of days in the calendar quarter in which the interim dividend is declared. Under the Merger Agreement, CYS is also required to distribute a similar partial payment dividend to its stockholders of record.