This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Two Harbors Investment Corp. Provides Update On Silver Bay Realty Trust Corp. IPO

Two Harbors Investment Corp. (NYSE: TWO; NYSE MKT: TWO.WS) reported that today Silver Bay Realty Trust Corp. (“Silver Bay”) announced the pricing of its initial public offering of 13,250,000 shares of common stock (the “IPO”) and granted the underwriters a 30-day option to purchase up to an additional 1,987,500 shares of common stock to cover over-allotments, if any. The shares are expected to begin trading on the New York Stock Exchange on December 14, 2012 under the symbol “SBY.”

Two Harbors previously announced it entered into an agreement with Silver Bay, pursuant to which it would contribute its existing portfolio of over 2,200 single-family properties to Silver Bay, together with $50 million in cash that would be used to acquire and renovate properties through the closing. In exchange for the contribution, Two Harbors would receive approximately 17.8 million shares of common stock of Silver Bay. The shares received by Two Harbors would 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 contribution, which remains subject to various conditions to closing, would close simultaneously with the closing of the IPO.

Silver Bay is a newly organized Maryland corporation focused on the acquisition, renovation, leasing and management of single-family residential properties for rental income and long-term appreciation. Silver Bay will be externally managed by PRCM Real Estate Advisers LLC, a joint venture between an affiliate of Pine River Capital Management L.P. and Provident Real Estate Advisors LLC. An affiliate of Pine River also serves as the external manager of Two Harbors and provides property acquisition and property management services with respect to Two Harbors’ portfolio of single-family rental properties. Entities managed by Provident are also contributing approximately 880 single-family residential properties to Silver Bay as part of the transaction. Upon consummation of the offering and the related transactions, Silver Bay will own more than 3,100 single-family properties located in Arizona, California, Florida, Georgia, Nevada, North Carolina and Texas. Silver Bay intends to elect and qualify to be taxed as a real estate investment trust.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs