NEW YORK--(BUSINESS WIRE)--
Chimera Investment Corporation (NYSE: CIM) (the “Company”) today
announced the pricing of its underwritten public offering of 7,400,000
shares of its 8.00% Series D Fixed-to-Floating Rate Cumulative
Redeemable Preferred Stock (the “Series D Preferred Stock”), liquidation
preference $25.00 per share, for gross proceeds of $185 million, before
deducting the underwriting discount and other estimated offering
expenses. The Company intends to apply to list the Series D Preferred
Stock on the New York Stock Exchange under the symbol “CIM PRD.” The
offering is expected to close on January 23, 2019, subject to customary
closing conditions.
The Company has granted the underwriters an option for 30 days to
purchase up to an additional 1,110,000 shares of the Series D Preferred
Stock to cover over-allotments, if any.
Dividends on the Series D Preferred Stock will accumulate and be payable
from and including the date of original issue to, but not including,
March 30, 2024 at a fixed rate of 8.00% per annum of the $25.00
liquidation preference. On and after March 30, 2024 dividends on the
Series D Preferred Stock will accumulate and be payable at a percentage
of the $25.00 liquidation preference equal to an annual floating rate of
three-month LIBOR plus a spread of 5.379% per annum.
The Company intends to use the net proceeds of the offering to finance
the acquisition of mortgage assets including residential mortgage loans,
non-Agency RMBS, Agency RMBS, Agency and non-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.
Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC,
Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and Keefe,
Bruyette & Woods, Inc., A Stifel Company are acting as joint
book-running managers for the offering.
This offering is being made pursuant to an effective shelf registration
statement and prospectus and related preliminary prospectus supplement
filed by the Company with the Securities and Exchange Commission. This
press release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities, in
any state or 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 jurisdiction.
Copies of the prospectus supplement and related prospectus for this
offering may be obtained by contacting Morgan Stanley & Co. LLC, 180
Varick Street, New York, New York 10014, Attention: Prospectus
Department; RBC Capital Markets, LLC, Three World Financial Center, 200
Vesey Street, 8th Floor, New York, New York, Attention:
Transaction Management, telephone: (866) 375-6829, email: rbcnyfixedincomeprospectus@rbccm.com;
UBS Securities LLC, 1285 Avenue of the Americas, New York, New York
10019, Attention: Prospectus Specialist, telephone: (888) 827-7275;
Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000,
Minneapolis, MN 55402, Attention: WFS Customer Service, telephone: (800)
645-3751, email: wfscustomerservice@wellsfargo.com;
J.P. Morgan Securities LLC, Attention: Prospectus Department, c/o
Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY
11717, (Tel: 866-803-9204); or Keefe, Bruyette & Woods, Inc., 787
Seventh Avenue, 4th Floor, New York, New York 10019,
Attention: Capital Markets, telephone: (800) 966-1559.
About Chimera Investment Corporation
Chimera Investment Corporation is a publicly traded real estate
investment trust, or REIT, that is primarily engaged in the business of
investing directly or indirectly through our subsidiaries, on a
leveraged basis, in a diversified portfolio of mortgage assets,
including residential mortgage loans, Non-Agency RMBS, Agency CMBS,
Agency RMBS, 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. 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. For example, the fact that this
offering has priced may imply that this offering will close, but the
closing is subject to conditions customary in transactions of this type
and may be delayed or may not occur at all.
Investors are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made. The
Company does 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 the
Company’s most recent filings with the Securities and Exchange
Commission. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190115005939/en/
Chimera Investment Corporation
Investor Relations, 888-895-6557
Source: Chimera Investment Corporation
