Chimera Investment Corporation (NYSE: CIM) (the “Company”)
announced today the pricing of an underwritten public offering of
$65 million aggregate principal amount of its 9.00% senior notes
due 2029 (the “Notes”). The Company has granted the underwriters a
30-day option to purchase up to an additional $9.75 million
aggregate principal amount of the Notes to cover over-allotments.
The offering is expected to close on May 22, 2024, subject to the
satisfaction of customary closing conditions.
The Company intends to apply to list the Notes on the New York
Stock Exchange under the symbol “CIMN” and, if the application is
approved, expects trading in the Notes on the New York Stock
Exchange to begin within 30 days after the Notes are first
issued.
The Company intends to use the net proceeds of the Notes to
finance the acquisition of mortgage assets including residential
mortgage loans, non-Agency RMBS, Agency RMBS, Agency CMBS and other
targeted assets, and for other general corporate purposes such as
repayment of outstanding indebtedness or to pay down other
liabilities, working capital and for liquidity needs.
The Notes will be senior unsecured obligations of the Company,
and pay interest quarterly in cash on February 15, May 15, August
15 and November 15 of each year, commencing August 15, 2024. The
Notes will mature on May 15, 2029, and may be redeemed, in whole or
in part, at any time, or from time to time, at the Company’s option
on or after May 15, 2026.
Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS
Securities LLC, Wells Fargo Securities, LLC, Keefe, Bruyette &
Woods, Inc., and Piper Sandler & Co. will serve as joint
book-running managers for the offering.
The Notes will be offered under the Company’s existing shelf
registration statement filed with the Securities and Exchange
Commission. The offering of these Notes will be made only by means
of a prospectus and a related prospectus supplement, a copy of
which may be obtained by contacting:
Morgan Stanley & Co. LLC 180 Varick St., 2nd Floor, New
York, New York 10014 Attn: Prospectus Department Toll-Free:
1-800-584-6837
RBC Capital Markets, LLC Brookfield Place, 200 Vesey Street, 8th
Floor, New York, NY 10281 Attn: Transaction Management Email:
rbcnyfixedincomeprospectus@rbccm.com Toll-Free: 1-866-375-6829
UBS Securities LLC 1285 Avenue of the Americas, New York, New
York 10019 Attn: Prospectus Department Toll-Free:
1-888-827-7275
Wells Fargo Securities, LLC 608 2nd Avenue South, Suite 1000
Minneapolis, MN 55402 Attn: WFS Customer Service Email:
wfscustomerservice@wellsfargo.com Toll-Free: 1-800-645-3751
Keefe, Bruyette & Woods, Inc. 787 Seventh Avenue, 4th Floor,
New York, NY 10019 Attn: Capital Markets Toll-Free:
1-800-966-1559
Piper Sandler & Co. 1251 Avenue of the Americas, 6th Floor,
New York, NY 10020 Attn: Debt Capital Markets Email:
fsg-dcm@psc.com
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the Notes or any other securities,
nor shall there be any sale of such Notes or any other securities
in any state or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or other
jurisdiction.
About Chimera Investment Corporation
Chimera is a publicly traded real estate investment trust, or
REIT, that is primarily engaged in the business of investing
directly or indirectly through its subsidiaries, on a leveraged
basis, in a diversified portfolio of mortgage assets, including
residential mortgage loans, Agency RMBS, Non-Agency RMBS, Agency
CMBS, and other real estate related securities.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995, including, but
not limited to, statements regarding the offering and the intended
use of proceeds. Actual results may differ from expectations,
estimates and projections and, consequently, readers should not
rely on these forward-looking statements as predictions of future
events. Words such as “expect,” “target,” “assume,” “estimate,”
“project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,”
“may,” “will,” “could,” “should,” “believe,” “predicts,”
“potential,” “continue,” and similar expressions are intended to
identify such forward-looking statements. These forward-looking
statements involve significant risks and uncertainties that could
cause actual results to differ materially from expected results,
including, among other things, those described in our most recent
Annual Report on Form 10-K, and any subsequent Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K, under the caption “Risk
Factors.” Factors that could cause actual results to differ
include, but are not limited to: our business and investment
strategy; our ability to accurately forecast the payment of future
dividends on our common and preferred stock, and the amount of such
dividends; our ability to determine accurately the fair market
value of our assets; availability of investment opportunities in
real estate-related and other securities, including our valuation
of potential opportunities that may arise as a result of current
and future market dislocations; our expected investments; changes
in the value of our investments, including negative changes
resulting in margin calls related to the financing of our assets;
changes in inflation, interest rates and mortgage prepayment rates;
prepayments of the mortgage and other loans underlying our
mortgage-backed securities, or MBS, or other asset-backed
securities, or ABS; rates of default, forbearance, deferred
payments, delinquencies or decreased recovery rates on our
investments; general volatility of the securities markets in which
we invest; our ability to maintain existing financing arrangements
and our ability to obtain future financing arrangements; our
ability to effect our strategy to securitize residential mortgage
loans; interest rate mismatches between our investments and our
borrowings used to finance such purchases; effects of interest rate
caps on our adjustable-rate investments; the degree to which our
hedging strategies may or may not protect us from interest rate
volatility; the impact of and changes to various government
programs; impact of and changes in governmental regulations, tax
law and rates, accounting guidance, and similar matters; market
trends in our industry, interest rates, the debt securities markets
or the general economy; estimates relating to our ability to make
distributions to our stockholders in the future; our understanding
of our competition; our ability to find and retain qualified
personnel; our ability to maintain our classification as a REIT for
U.S. federal income tax purposes; our ability to maintain our
exemption from registration under the Investment Company Act of
1940, as amended, or 1940 Act; our expectations regarding
materiality or significance; and the effectiveness of our
disclosure controls and procedures.
Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
We do not undertake or accept any obligation to release publicly
any updates or revisions to any forward-looking statement to
reflect any change in its expectations or any change in events,
conditions or circumstances on which any such statement is based.
Additional information concerning these, and other risk factors is
contained in our most recent filings with the SEC. All subsequent
written and oral forward-looking statements concerning the Company
or matters attributable to the Company or any person acting on its
behalf are expressly qualified in their entirety by the cautionary
statements above.
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Chimera Investment Corporation Investor Relations Tel:
888-895-6557
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