Company: TWO-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001465740-25-000104
Chunk: 154

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 8
Chunk 154
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 to mark the underlying collateral to fair value. A reduction in the value of pledged assets below a designated threshold would require the Company to provide additional collateral or pay down the facility. As of March 31, 2025 and December 31, 2024, mortgage loans held-for-sale with a carrying value of $8.1 million and $2.1 million, respectively, were pledged as collateral for the Company’s future payment obligations under its warehouse facility. Additionally, as of both March 31, 2025 and December 31, 2024, cash of $0.4 million was held in restricted accounts as collateral for the future payment obligations of outstanding warehouse facility balances. The Company does not anticipate any defaults by its warehouse facility counterparties, although there can be no assurance that any such default or defaults will not occur.

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Table of ContentsTWO HARBORS INVESTMENT CORP.Notes to the Consolidated Financial Statements (unaudited)

Note 16. Convertible Senior Notes

 The Company’s convertible senior notes are unsecured, pay interest semiannually at a rate of 6.25% per annum and are convertible at the option of the holder into shares of the Company’s common stock. As of both March 31, 2025 and December 31, 2024, the notes had a conversion rate of 33.8752 shares of common stock per $1,000 principal amount of the notes. The notes will mature in January 2026, unless earlier converted or repurchased in accordance with their terms. The Company does not have the right to redeem its convertible senior notes prior to maturity, but may repurchase the notes in open market or privately negotiated transactions at the same or differing price without giving prior notice to or obtaining any consent of the holders. The Company may also be required to repurchase the notes from holders under certain circumstances. The Company did not repurchase any of its convertible senior notes during the three months ended March 31, 2025 or 2024.As of both March 31, 2025 and December 31, 2024, $261.9 million principal amount of convertible senior notes remained outstanding. The outstanding amount due on the notes as of March 31, 2025 and December 31, 2024 was $260.6 million and $260.2 million, respectively, net of unamortized deferred issuance costs.

Note 17. Commitments and Contingencies 

The following represent the material commitments