Newly formed REIT files $250 million IPO

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. Manhattan-based Chimera, which will be classified as a real estate investment trust, will invest in residential mortgage loans, mortgage-backed securities, real estate-related securities and other asset classes. Chimera will be externally managed by Fixed Income Discount Advisory Co., a wholly-owned subsidiary of asset manager Annaly Capital Management Inc. In a regulatory filing with the Securities and Exchange Commission, the company did not disclose the number of shares or expected price range of the offering. Annaly said it plans to acquire nearly 10% of Chimera's outstanding shares of common stock concurrent with the offering. 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. The company plans to trade on the New York Stock Exchange under the ticker symbol “CIM.” Merrill Lynch & Co. will serve as the offering's lead underwriter.