Chimera Investment Corporation Prices Public Offering of 8.0% Series A Cumulative Redeemable Preferred Stock
October 06 2016 - 5:18PM
Business Wire
Chimera Investment Corporation (NYSE:CIM) (the “Company”) today
announced the pricing of its underwritten public offering of
5,400,000 shares of its 8.0% Series A Cumulative Redeemable
Preferred Stock (the “Series A Preferred Stock”), liquidation
preference $25.00 per share, for gross proceeds of approximately
$135 million, before deducting the underwriting discount and other
estimated offering expenses. The Company intends to apply to list
the Series A Preferred Stock on the New York Stock Exchange under
the symbol “CIM PRA.” The offering is expected to close on October
14, 2016, subject to customary closing conditions.
The Company has granted the underwriters an option for 30 days
to purchase up to an additional 810,000 shares of the Series A
Preferred Stock to cover over-allotments, if any.
The Company intends to use the net proceeds of the offering to
acquire residential mortgage loans and other targeted assets and
for general corporate purposes, including, without limitation, to
pay down liabilities and other working capital items.
Morgan Stanley & Co. LLC, UBS Securities LLC, Keefe,
Bruyette & Woods, Inc. and RBC Capital Markets, LLC 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, UBS Securities LLC, 1285 Avenue of the
Americas, New York, New York 10019, Attention: Prospectus
Specialist, telephone: (888) 827-7275, Keefe, Bruyette & Woods,
Inc., 787 Seventh Avenue, 4th Floor, New York, New York 10019,
Attention: Capital Markets, telephone: (800) 966-1559, or 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.
About Chimera Investment
Corporation
The Company invests in residential mortgage loans, residential
mortgage-backed securities, real estate-related securities and
various other asset classes. The Company’s principal business
objective is to generate income from the spread between yields on
its investments and its cost of borrowing and hedging activities.
The Company is a Maryland corporation that has elected to be taxed
as a real estate investment trust.
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.
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