New York-based Chimera Investment Corp. priced an underwritten public offering of 7.4 million of its 8.00% series D fixed- to floating-rate cumulative redeemable preferred shares, liquidation preference $25 per share, for gross proceeds of $185 million.
The real estate investment trust granted the underwriters a 30-day option to buy up to an additional 1,110,000 preferred shares to cover any overallotments.
Dividends on the preferred shares will be payable from the date of original issue to March 30, 2024, at a fixed rate of 8.00% per annum of the liquidation preference. On and after March 30, 2024, dividends will be payable at a percentage of the liquidation preference equal to an annual floating rate of three-month London inter-bank offered rate plus a spread of 5.379% per annum.
The company intends to use the net proceeds 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 general corporate purposes such as repayment of outstanding debt and other liabilities, and for working capital and liquidity needs.
The company plans to apply to list the shares on the New York Stock Exchange under the symbol CIM PRD.
The offering is expected to close Jan. 23.
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. are acting as joint book-running managers for the offering.