CrossCountry Mortgage Enhances Shareholder Value with New Dividend Proposal for Two Harbors

In a significant move, CrossCountry Mortgage, LLC (CCM) recently disclosed a new financial strategy aimed at benefiting the stockholders of Two Harbors Investment Corp. (TWO). As part of a binding merger agreement, CrossCountry will provide a pro-rated dividend for the quarter during which the acquisition is finalized. This decision is strategically crafted to improve the cash returns to TWO stockholders, reflecting CrossCountry's commitment to shareholder value.

Details of the Pro-Rated Dividend

Under the terms of the merger, the pro-rated dividend will be calculated based on TWO's most recent quarterly dividend. The specific amount paid to stockholders hinges on the number of days elapsed from the end of the preceding calendar quarter up to the day before the closing date. Essentially, stockholders can potentially receive additional cash amounts ranging from $12.45 to $12.68 per share, depending on when the acquisition by CrossCountry finalizes.

This pro-rated payment is expected to provide up to $0.34 per share extra cash value, which would be beneficial for all TWO stockholders, allowing them to capitalize on both the merger consideration and the upcoming dividends. Furthermore, it adds financial certainty and speed compared to competing proposals that lack guaranteed funding.

Competitive Landscape

CrossCountry’s announcement comes amid ongoing competitive tensions in the mortgage market, particularly concerning a proposal by UWM Holdings Corporation. UWM's offer has been described as uncertain and non-binding, greyed by insufficient financing commitments. By contrast, CrossCountry's well-structured and timely plan positions it as a financially stronger option for TWO stockholders, emphasizing certainty and reliability in a fluctuating market.

CrossCountry Mortgage has already made significant progress in securing necessary regulatory approvals, having completed 39 out of 53 required approvals, thereby reinforcing its commitment to accelerate the merger timeline. Stockholders are urged to take the next step by participating in the special meeting on May 19, where they will vote on this crucial merger.

About CrossCountry Mortgage

CrossCountry Mortgage has established itself as the top retail mortgage lender across the United States, employing over 9,000 professionals and operating in more than 1,000 branches nationwide. With a robust service portfolio offering more than 120 mortgage options, including conventional, jumbo, and government-insured loans, CrossCountry has received extensive recognition for its business growth and employee-centric culture. The company’s accolades include repeated appearances on the Inc. 5000 list of fastest-growing private enterprises.

CrossCountry's primary mission is to make every mortgage transaction a success for its clients. This acquisition of Two Harbors is strategically aligned with that vision, enhancing both market presence and shareholder returns.

Future Outlook

While the merger proposal lays a groundwork for enhanced shareholder value, stakeholders remain acutely aware of potential risks that could juxtapose the completion of such a transaction. To that end, CrossCountry has reassured stockholders about its solid financing commitments and regulatory compliance, underscoring that their experience is built on sustained performance.

As the date of the special meeting approaches, attention will likely intensify as stockholders consider their options and the unfolding landscape of mortgage finance. CrossCountry urges stockholders to vote in favor of this merger, emphasizing it as a pivotal moment for retaining and enhancing their investment returns while paving the way for growth.

In conclusion, with its structured approach and solid financial strategies, CrossCountry Mortgage is well-positioned to secure a favorable outcome for Two Harbors stockholders, ensuring that the acquisition delivers maximum value a swiftly as possible.