Chimera Investment Corporation (NYSE: CIM) is back at the trough to raise more cash. The vulture mortgage investment REIT has filed to sell up to $750 million in common and preferred stock. No underwriters were named in the filing.
The company lists the use of funds as "to finance the acquisition ofnon-Agency RMBS, Agency RMBS, prime and Alt-A mortgage loans, CMBS,CDOs and other consumer or non-consumer ABS, and for other generalcorporate purposes such as repayment of outstanding indebtedness,working capital, and for liquidity needs."
Chimera’s charter provides that it may issue up to 550,000,000 sharesof stock, consisting of up to 500,000,000 shares of common stock havinga par value of $0.01 per share and up to 50,000,000 shares of preferredstock having a par value of $0.01 per share. As of November 30, 2008,177,170,098 shares of common stock and no shares of preferred stockwere issued and outstanding.
As a reminder, we dubbed this one as being the Annaly CapitalManagement, Inc. (NYSE: NLY) vulture vehicle. This is also notChimera’s first secondary filing.
Jon C. Ogg
December 24, 2008