Chimera Investment units $65 million senior notes providing

May 15, 2024 | blog

NEW YORK – Chimera Investment Corporation (NYSE: NYSE:), an actual property funding belief (REIT), has introduced the pricing of a public providing of $65 million in senior notes with a 9.00% rate of interest, maturing in 2029.

The firm additionally offered underwriters a 30-day choice to purchase an extra $9.75 million in notes to cowl over-allotments. The providing is slated to shut on May 22, 2024, pending customary closing circumstances.

The notes, if authorised for itemizing, will seem on the New York Stock Exchange below the ticker image “CIMN,” with buying and selling anticipated to start inside 30 days post-issuance.

Chimera plans to allocate the online proceeds in direction of buying mortgage belongings, reminiscent of residential mortgage loans and varied mortgage-backed securities (MBS), and for common company functions. These could embrace repaying debt, working capital, and liquidity wants.

The notes are senior unsecured obligations of Chimera and can pay quarterly curiosity on the fifteenth of February, May, August, and November, beginning August 15, 2024. The notes will mature on May 15, 2029, with an choice for the corporate to redeem them partially or in full at its discretion on or after May 15, 2026.

Joint book-running managers for the providing embrace Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Keefe, Bruyette & Woods, Inc., and Piper Sandler & Co.

The providing is made below Chimera’s current shelf registration assertion filed with the Securities and Exchange Commission. A prospectus and associated prospectus complement are required for the providing, obtainable upon request from the book-running managers.

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Chimera Investment Corporation makes a speciality of a diversified portfolio of mortgage belongings, together with a mixture of residential mortgage loans and actual estate-related securities.

The firm has cautioned traders that this press launch incorporates forward-looking statements topic to dangers and uncertainties that would trigger precise outcomes to vary materially from expectations.

This information is predicated on a press launch assertion from Chimera Investment Corporation.

InvestingPro Insights

As Chimera Investment Corporation (NYSE: CIM) embarks on its public providing of senior notes, traders could also be eager to grasp the corporate’s monetary well being and market place. According to InvestingPro, Chimera’s internet earnings is predicted to develop this 12 months, which may sign a strengthening of the corporate’s profitability amidst its present capital-raising efforts. This is especially related as the corporate appears to be like to develop its mortgage asset acquisitions.

InvestingPro knowledge illustrates that Chimera is presently buying and selling at a low Price / Book a number of of 0.41 as of Q1 2024, suggesting that the inventory could also be undervalued in comparison with the corporate’s e-book worth. Moreover, with a notable dividend yield of 9.82% as of the most recent knowledge, Chimera continues to reward shareholders with important earnings, an element that would attraction to income-focused traders contemplating the brand new senior notes providing.

For traders fascinated about additional evaluation and metrics, InvestingPro provides further insights, together with the truth that Chimera has maintained dividend funds for 18 consecutive years. This consistency in returning worth to shareholders could present confidence within the firm’s monetary administration and long-term stability. To entry these insights and extra, traders are inspired to discover the complete suite of InvestingPro Tips, which presently lists 7 further ideas for Chimera. Remember to make use of the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.

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