Market Overview

Two Harbors to Contribute Single-Family Rental Properties to Silvery Bay Realty Trust

Related TWO
Compass Point Remains Positive On Two Harbors Investment Despite Core EPS Misses
UPDATE: Credit Suisse Reiterates On Two Harbors Investment As Risk/Reward Is Still Favorable
Related SBY
Silver Bay Realty Trust Corp. Announces Discussions To Internalize Its Management Structure
Can Silver Bay Realty (SBY) Run Higher on Strong Earnings Estimate Revisions? - Tale of the Tape

Two Harbors Investment Corp. (NYSE: TWO) today announced it has entered into an agreement with Silver Bay Realty Trust Corp. (“Silver Bay”), which will enable Silver Bay to acquire a portfolio of more than 3,100 single-family residential properties simultaneously with the closing of Silver Bay's initial public offering of its common stock (“IPO”).

Pursuant to a contribution agreement, Two Harbors expects to contribute its existing portfolio of over 2,200 single-family properties to Silver Bay, together with $50 million in cash that will be used by Two Harbors to acquire and renovate properties through the closing. In exchange for the contribution, Two Harbors will receive approximately 17.8 million shares of common stock of Silver Bay, which will represent approximately 47.7% of the outstanding stock of Silver Bay after the offering or approximately 45.3% if the underwriters exercise their option to acquire additional shares within 30 days following the offering. The shares received by Two Harbors will be subject to a 90-day lock-up period following the closing of the IPO, after which Two Harbors may, subject to the discretion and approval of its Board of Directors and in compliance with applicable securities laws, hold, sell or otherwise dispose of the shares, which may include a distribution of the shares by means of a special dividend to Two Harbors shareholders. The Silver Bay common stock will be listed on the New York Stock Exchange under the symbol “SBY.”

Posted-In: News

 

Related Articles (TWO + SBY)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters

Benzinga Professional