Shareholders of Capitol Acquisition, a special purpose acquisition corporation,approved a deal to establish Two Harbors Investment Corp., a new RMBS REIT.
The proposed merger transaction was approved at a special meeting of Capitol stockholders. The transaction's closing should happen no later than Oct. 28.
The REIT will be managed by an MBS team from Pine River Capital Management, Steve Kuhn and Bill Roth. Kuhn and Roth have a proven track record in the RMBS investment sector.
Two Harbors is a newly-formed Maryland corporation focused on RMBS. It is headquartered in Minnetonka, Minnesota, and is externally managed and advised by PRCM Advisers, a wholly-owned subsidiary of Pine River Capital.
Capitol Acquisition Corp. is a Washington, D.C. specified purpose acquisition company formed to complete a business merger. Upon completion of the transactions described above, Capitol will become an indirect wholly-owned subsidiary of Two Harbors.