Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 229

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 8
Chunk 229
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 Agreement, the Company agreed to make a cash payment of $375 million to Pine River, which was paid in September 2025. Pine River has since caused to be dismissed with prejudice all claims alleged in the federal court action. The state court action was previously dismissed without prejudice. Pine River also relinquished ownership or any other interest it may hold in any and all intellectual property that Pine River licensed, conveyed, or otherwise provided to the Company or that was developed by or for the Company, whether pursuant to the terms of the management agreement between the parties or otherwise. The Company and Pine River have agreed to unconditionally and irrevocably release and discharge each other and their respective representatives from and against any and all claims alleged in the lawsuits.For the three and nine months ended September 30, 2025, the Company’s consolidated financial statements reflect litigation settlement expense of $175.1 million and $375.0 million, respectively. Based on information currently available, management is not aware of any other legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements and therefore no accrual is required as of September 30, 2025.

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

Note 15. Stockholders’ Equity

Redeemable Preferred StockThe following is a summary of the Company’s series of cumulative redeemable preferred stock issued and outstanding as of September 30, 2025. In the event of a voluntary or involuntary liquidation, dissolution or winding up of the Company, each series of preferred stock will rank on parity with one another and rank senior to the Company’s common stock with respect to the payment of the dividends and the distribution of assets. (dollars in thousands)Class of StockIssuance DateShares Issued and OutstandingCarrying ValueContractual RateRedemption Eligible Date (1)Fixed to Floating Rate Conversion Date (2) Floating Annual Rate (3)Series AMarch 14, 20175,050,221 $121,971 8.125 %April 27, 2027April 27, 20273M Rate + 5.660%Series BJuly 19, 201710,159,200 245,670 7.625 %July 27, 2027July 27, 20273M Rate + 5.352%Series CNovember 27, 20179,