Chimera Investment Corporation Sponsors Two Residential Mortgage Loan Securitizations
March 01 2021 - 4:15PM
Business Wire
On February 25, 2021, Chimera Investment Corporation (NYSE:CIM)
sponsored CIM 2021-R1, a $2.1 billion securitization of seasoned
reperforming residential mortgage loans, and CIM 2021-NR1, a $233
million securitization of seasoned non-REMIC eligible residential
mortgage loans. The mortgage loans for both securitizations were
from the call and collapse of Chimera’s CIM 2016-1, CIM 2016-2, and
CIM 2016-3 securitizations (the “Prior Securitizations”).
Securities issued by CIM 2021-R1, with an aggregate balance of
approximately $1.8 billion, were sold in a private placement to
institutional investors. These senior securities represented
approximately 85% of the capital structure. Chimera retained
subordinate interests in securities with an aggregate balance of
approximately $315 million and certain interest-only securities.
Chimera also retained an option to call the securitized mortgage
loans at any time beginning in February 2025.
Securities issued by CIM 2021-NR1, with an aggregate balance of
approximately $163 million, were sold in a private placement to
institutional investors. These senior securities represented
approximately 70% of the capital structure. Chimera retained
subordinate interests in securities with an aggregate balance of
approximately $70 million. Chimera also retained an option to call
the securitized mortgage loans at any time beginning in February
2022.
Chimera’s expected weighted average cost of debt of these two
securitizations is 2.04% compared to a weighted cost of debt of
5.20% for the Prior Securitizations.
Disclaimer
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. Readers are cautioned not to place undue reliance upon
any forward-looking statements, which speak only as of the date
made. Chimera 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 Chimera’s most recent filings with the
Securities and Exchange Commission (SEC). All subsequent written
and oral forward-looking statements concerning Chimera or matters
attributable to Chimera or any person acting on its behalf are
expressly qualified in their entirety by the cautionary statements
above.
About Chimera
Investment Corporation
We are a publicly traded REIT that is primarily engaged in the
business of investing, on a leveraged basis, in a diversified
portfolio of real estate assets, including mortgage loans,
Non-Agency RMBS, Agency CMBS, Agency RMBS, and other real estate
assets.
Please visit www.chimerareit.com for additional information
about the Company.
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