Concord Medical (CCM) director Wayne Yu files initial Form 3 report

Two Harbors Investment Corp. (TWO) received final regulatory approval for its merger with CrossCountry Mortgage (CCM). The deal, expected to close by Aug. 25, will give TWO shareholders $12 per share and a prorated dividend. TWO faces a $500M+ lawsuit from UWM over the merger.

CCM’s parent plans to sell $750M in senior unsecured notes to refinance its MSR credit line tied to the $1.26B Two Harbors transaction. Fitch expects a BB-(EXP) rating and says proceeds would repay MSR-backed facilities. The deal would add a $159B servicing portfolio to CCM’s $202B book, moving it to No. 8. Fitch projects corporate leverage rising to 2.4x, with leverage reduction needed to avoid downgrade.

Fitch said CCM’s leverage may rise temporarily as it issues $500M in debt to fund its near-closing $1.26B deal to buy Two Harbors. The combined servicing portfolio would total $159B plus CCM’s $202B (Q1). Fitch noted a shift to unsecured debt could support liquidity, while ratings depend on reducing leverage toward 1.0x.

Mortgage rates edged up on renewed U.S.-Iran war risks, while applications were largely unchanged. Two Harbors (TWO) shareholders approved its acquisition by CrossCountry Mortgage (CCM) for $12/share cash plus a stub dividend, pending election certification. ICE reported delinquencies rose to 3.5% due to a calendar effect. MBA said housing supply may outpace demand in early 2030s.

Boeing announced a 140-jet order from Avolon, a leasing company. The deal includes 737-10 jets, bringing Avolon's backlog of 737 Max aircraft to over 240. This is the largest single-aisle order by a leasing company, according to Boeing.

Guggenheim kept its Buy rating on Travere Therapeutics but reduced its price target from $89 to $78, a 12.4% decrease. The new target suggests a 57.9% upside from the Nov 3 close of $49.41, according to the firm.