(Read more on the debt and equity markets.)
NEW YORK CITY-Chimera Investment Corp., a newly formed specialty finance company that will invest in mortgages, filed to raise up to $250 million through an initial public offering. The REIT will invest in residential mortgage loans, mortgage-backed securities, real estate-related securities and various other asset classes.
The company plans to trade on the New York Stock Exchange under the ticker symbol "CIM" and will be externally managed by Fixed Income Discount Advisory Co., a wholly owned subsidiary of asset manager Annaly Capital Management Inc. Merrill Lynch & Co. will serve as the offering's lead underwriter.
In a regulatory filing with the SEC, the company did not disclose the number or expected price range of the shares to be offered. "Currently, no public market exists for our common stock," the company says in its registration statement. "Concurrent with this offering, we will sell to Annaly 9.8% of our outstanding shares after giving effect to the shares issued in this offering, excluding shares sold pursuant to the underwriters' exercise of their overallotment option."
The company intends to elect and qualify to be taxed as a REIT for federal income tax purposes. "To assist us in qualifying as a REIT, ownership of our common stock by any person is generally limited to 9.8% in value or in number of shares, whichever is more restrictive, of any class or series of the outstanding shares of our capital stock," the statement says. "In addition, our charter contains various other restrictions on the ownership and transfer of our common stock."
According to the SEC filing, Chimera plans to use the proceeds from the IPO to invest in prime and alt-A mortgage loans, non-Agency RMBS, Agency RMBS and ABS, CDOs, CMBS and other consumer or non-consumer ABS.
The company will initially focus on residential mortgage loans that have been originated by select high-quality originators, including the retail lending operations of leading commercial banks, and non-Agency RMBS, according to the SEC filing.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
