Chimera Closes $400 Million Capital Commitment Led by Funds Managed by Ares Management Corporation
June 10 2020 - 04:15PM
Business Wire
(06/10/2020)-- Chimera Investment Corporation (NYSE: CIM)
(“Chimera”) today announced the closing of a three-year $400
million secured loan commitment led by funds managed by the
Alternative Credit Strategy at Ares Management Corporation
(“Ares”).
“This commitment led by Ares further enhances our strong
liquidity position and diversifies our financing sources away from
traditional bank repo markets and gives us the ability to seek new
investment opportunities,” said Matt Lambiase, President/CEO at
Chimera.
The lenders in the Chimera/Ares transaction will receive a 7%
coupon on the term loan and price appreciation warrants that can be
settled in cash at a discount to the market value.
“Recent market volatility has created turbulence across the
spectrum of asset markets. This has led to opportunities for Ares
Alternative Credit to have constructive conversations with
borrowers about the capital solutions we can offer,” said Kevin
Alexander, Partner in Alternative Credit at Ares. “We believe
Chimera is well positioned in its industry and we are pleased to
support the company in its next phase of growth.”
About Chimera Investment Corporation
Chimera is a publicly traded 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. Please visit chimerareit.com for additional
information.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global
alternative investment manager operating integrated businesses
across Credit, Private Equity and Real Estate. Ares Management’s
investment groups collaborate to deliver innovative investment
solutions and consistent and attractive investment returns for fund
investors throughout market cycles. Ares Management’s global
platform had $149 billion of assets under management as of March
31, 2020 with approximately 1,200 employees in over 20 offices in
more than 10 countries. Please visit aresmgmt.com for additional
information.
About Ares Alternative Credit
Ares’ Alternative Credit strategy focuses on direct lending and
investing in assets that generate contractual cash flows and fills
gaps in the capital markets between credit, private equity and real
estate. Ares Alternative Credit targets investments across the
capital structure in specialty finance, lender finance, loan
portfolios, equipment leasing, structured products, net lease, cash
flow streams (royalties, licensing, management fees), fund
secondaries and other asset-focused investments. Co-Headed by Keith
Ashton and Joel Holsinger, Ares Alternative Credit leverages a
broadly skilled and cohesive team of approximately 40 investment
professionals as of March 31, 2020.
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