TWO and CrossCountry Mortgage amend merger deal, raise offer to $11.30

Two Harbors Investment Corp (NYSE: TWO) and CrossCountry Mortgage announced an amended merger agreement that increases the per-share cash consideration to $11.30 from the original $10.80 per share.

The amendment follows TWO's board evaluation of an unsolicited competing proposal from UWM Holdings Corporation received April 20, 2026. After review with financial and legal advisors, TWO's board determined the amended CrossCountry transaction remains in stockholders' best interests.

Under the revised terms, CrossCountry will acquire all outstanding TWO common stock in an all-cash transaction. TWO's preferred stock will be redeemed at $25.00 per share plus accumulated dividends. The board unanimously approved the amended agreement and maintains its recommendation for stockholder approval.

A special stockholder meeting to approve the transaction is scheduled for May 19, 2026. Stockholders who previously voted do not need to take additional action but may change their votes before the meeting.

"Our increased bid reflects our continued excitement for this transaction and our strong conviction in the strategic and financial merits of combining CCM and TWO Harbors," said Ron Leonhardt, founder and CEO of CrossCountry Mortgage.

The transaction is expected to close in the third quarter of 2026, subject to stockholder approval and regulatory approvals. Upon completion, TWO will be delisted from the New York Stock Exchange and become a wholly owned CrossCountry subsidiary.

TWO intends to file a supplemental proxy statement with the Securities and Exchange Commission reflecting the amended terms. The company plans to continue paying regular quarterly dividends until the transaction closes.

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