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Two Harbors delays CrossCountry sale and recalculates stub dividend
The stub dividend will be recalculated using Two Harbors’ $0.34 quarterly payout and the actual closing date, with payment to record holders the last trading day before the merger effective time.
Two Harbors Investment Corp. said its planned sale to CrossCountry Intermediate Holdco LLC will close later than expected, triggering a change to the estimated “stub period” dividend tied to the merger timeline, according to an 8-K filed with the SEC.
The company said the stub dividend will be based on its $0.34 quarterly dividend multiplied by the number of days from the end of the second quarter of 2026 through the day before the merger closes, then divided by 92 days in the third quarter of 2026. Holders of record as of the last trading day immediately before the merger effective time will receive the payout, which will be paid concurrently with the merger consideration.
Two Harbors previously estimated the stub dividend at $0.12196 per share based on an anticipated Aug. 3 closing date, but that figure will be updated once the actual closing date is known. The company also stated the stub dividend will not reduce or otherwise affect the merger consideration payable to holders of Two Harbors common stock.
HousingWire added that the transaction was framed as a strategic move to pair Two Harbors’ mortgage asset portfolio with a retail origination and servicing platform. If the deal closes as designed, CCM would pay about $1.26 billion after a public bidding battle with United Wholesale Mortgage that increased the price by about $126 million. HousingWire further noted that CCM produces $51 billion in mortgages, making it the No. 7 overall lender and the top distributed retail mortgage lender in 2025, and that Two Harbors would bring a $159 billion mortgage-servicing rights portfolio to CCM’s $202 billion portfolio as of the first quarter.