|3 Months Ended|
Mar. 31, 2020
|Subsequent Events [Abstract]|
|Subsequent Events||Subsequent Events
On April 6, 2020, the Company announced that its board of directors declared an interim common stock dividend of $0.05 per share. The interim dividend was paid on April 29, 2020 to common stockholders of record as of April 16, 2020. On the same date, the Company’s board of directors also declared the following first quarter 2020 preferred stock dividends:
On April 13, 2020, the Company announced that it had elected to not renew the Management Agreement by and among the Company, Two Harbors Operating Company LLC, and PRCM Advisers on the basis of unfair compensation payable to the manager. Notice of non-renewal was provided pursuant to Section 13(a)(ii) of the Management Agreement. As a result, the Management Agreement will terminate and the Company will be required to pay a termination fee, to be calculated pursuant to the terms of the Management Agreement, on September 19, 2020. Following the termination of the Management Agreement, the Company will become a self-managed company. The Company expects to continue to be managed by its current senior management team, along with the other personnel currently providing services to the Company.
Events subsequent to March 31, 2020 were evaluated through the date these condensed consolidated financial statements were issued and no other additional events were identified requiring further disclosure in these condensed consolidated financial statements.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef