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Mortgage REITs Two Harbors, CYS in M&A Deal

Mortgage REITs Two Harbors Investment Corp. and CYS Investments, both headquartered in New York, have agreed to a stock-for-stock merger that values CYS at about $1.2 billion. The combined company would have a pro forma equity base of nearly $5 billion.

Two Harbors CEO Thomas Siering said Thursday that the merger “offers Two Harbors stockholders the opportunity to benefit from additional capital, supporting continued growth in our target assets, as well as an improved cost structure. The combination of the two companies also supports the potential for the premium valuation of a pro forma Two Harbors.”

Completion of the merger is subject to approval by stockholders in both companies. The transaction is expected to close in the third quarter of 2018.

The mortgage REIT sector has seen a number of consolidations in recent years, including a combination of Colony NorthStar and two NorthStar entities last August.

For comments, questions or concerns, please contact Paul Bubny

Connect

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Financing
  • ◦Sale/Acquisition