Convertible Notes Due 2026

In February 2021, Two Harbors Investment Corp. (“TWO”) completed an underwritten public offering of convertible senior notes due 2026. The 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 TWO common stock. The notes will mature in January 2026, unless earlier converted or repurchased in accordance with their terms. TWO will not have the right to redeem the notes prior to maturity, but may repurchase the notes from holders in the open market or be required to repurchase the notes from holders under certain circumstances. The notes will have an initial conversion rate of 135.5014 shares of common stock per $1,000 principal amount of the notes (equivalent to an initial conversion price of $7.38 per share), subject to adjustment.

Convertible Notes Due 2022

In January 2017, TWO completed an underwritten public offering of convertible senior notes due 2022. The notes were unsecured, paid interest semiannually at a rate of 6.25% per annum and were convertible at the option of the holder into shares of TWO common stock. The notes matured per their terms on January 15, 2022.