Real estate investment trust Two Harbors Investment Corp. launched an underwritten public offering of 18 million shares of its common stock.

The company also plans to grant the underwriters a 30-day option to purchase up to an additional 2.7 million shares of its common stock.

Based on the March 18 $14.26 per-share closing price of the company's stock, the offering, including the overallotment option, represents gross proceeds of $295.2 million.

Net proceeds will be used to purchase the company's target assets, including residential mortgage-backed securities, mortgage servicing rights and other financial assets, as well as for general corporate purposes.

Credit Suisse, J.P. Morgan and JMP Securities are the joint book-running managers for the offering.