On March 25, 2021, Chimera Investment Corporation (NYSE: CIM) sponsored CIM 2021-R2, a $ 1.5 billion securitization of seasoned reproductive residential mortgages, and CIM 2021-NR2, a securitization of $ 240.4 million. dollars in seasoned residential mortgages not eligible for REMIC. . The mortgages for both securitizations were from the call and collapse of Chimera’s CIM 2017-3, CIM 2017-4 and CIM 2018-NR1 securitizations (the “Prior Securitizations”).
The securities issued by CIM 2021-R2, with an aggregate balance of approximately $ 1.3 billion, were sold through a private placement to institutional investors. These senior securities represented approximately 85% of the capital structure. Chimera retained subordinated interests in securities with a total balance of approximately $ 224.6 million and certain interest-only securities. Chimera also retained the ability to recall securitized mortgages at any time from March 2025.
The securities issued by CIM 2021-NR2, for an aggregate balance of approximately $ 180.3 million, were sold through a private placement to institutional investors. These senior securities represented approximately 75% of the capital structure. Chimera retained subordinated interests in securities for a total balance of approximately $ 60.1 million. Chimera also retained the ability to recall securitized mortgages at any time from March 2022.
Chimera’s expected weighted average cost of debt for these two securitizations is 2.24% compared to a weighted cost of debt of 4.22% for previous securitizations.
In addition, Chimera sponsored two blue chip securitizations, $ 404.8 million from CIM 2021-J1 and $ 479.1 million from CIM 2021-J2, in March. Both securitizations are rated by Moody’s and Fitch.
Finally, on March 26, 2021, Chimera repaid a loan of $ 400 million secured by certain mortgage-backed securities and then repaid in cash all associated warrants at a price below the average price of its common shares on 30 days.
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, therefore, readers do not should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “target”, “presume”, “estimate”, “project”, “budget”, “anticipate”, “anticipate”, “intend to”, “plan”, “May”, “” ““ could ”,“ should ”,“ believe ”,“ expect ”,“ continue to continue) and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are posted. Chimera neither undertakes nor accepts any obligation to publicly release updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in the events, conditions or circumstances on which such statement is based. Additional information regarding these and other risk factors can be found in Chimera’s most recent documents with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements regarding Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the above cautionary statements.
About Chimera Investment Corporation
We are a publicly traded REIT primarily engaged in investing, with leverage, in a diversified portfolio of real estate assets including Mortgages, Agencyless RMBS, Agency CMBS, Real Estate RMBS agency and other real estate assets. .
Please visit www.chimerareit.com for more information about the Company.
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