Chimera Investment Corporation Sponsors Two Residential Mortgage Loan Securitizations

Rhea-AI Summary

On February 25, 2021, Chimera Investment Corporation (NYSE:CIM) announced the successful sponsorship of two securitizations: CIM 2021-R1, worth $2.1 billion, and CIM 2021-NR1, totaling $233 million. The loans in these securitizations are sourced from prior transactions. The CIM 2021-R1 securities have a senior balance of approximately $1.8 billion, while CIM 2021-NR1’s senior balance is around $163 million. Notably, the expected weighted average cost of debt for these securitizations is significantly lower at 2.04%, compared to 5.20% for previous securitizations.

Positive

• Successful sponsorship of CIM 2021-R1 securitization worth $2.1 billion.
• Successful sponsorship of CIM 2021-NR1 securitization totaling $233 million.
• Lower expected weighted average cost of debt at 2.04% compared to 5.20% for prior securitizations.

Negative

• None.

On February 25, 2021, Chimera Investment Corporation (NYSE:CIM) sponsored CIM 2021-R1, a $2.1 billion securitization of seasoned reperforming residential mortgage loans, and CIM 2021-NR1, a $233 million securitization of seasoned non-REMIC eligible residential mortgage loans. The mortgage loans for both securitizations were from the call and collapse of Chimera’s CIM 2016-1, CIM 2016-2, and CIM 2016-3 securitizations (the “Prior Securitizations”).

Securities issued by CIM 2021-R1, with an aggregate balance of approximately $1.8 billion, were sold in a private placement to institutional investors. These senior securities represented approximately 85% of the capital structure. Chimera retained subordinate interests in securities with an aggregate balance of approximately $315 million and certain interest-only securities. Chimera also retained an option to call the securitized mortgage loans at any time beginning in February 2025.

Securities issued by CIM 2021-NR1, with an aggregate balance of approximately $163 million, were sold in a private placement to institutional investors. These senior securities represented approximately 70% of the capital structure. Chimera retained subordinate interests in securities with an aggregate balance of approximately $70 million. Chimera also retained an option to call the securitized mortgage loans at any time beginning in February 2022.

Chimera’s expected weighted average cost of debt of these two securitizations is 2.04% compared to a weighted cost of debt of 5.20% for the Prior Securitizations.

Disclaimer

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, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

About Chimera Investment Corporation

We are a publicly traded REIT that is primarily engaged in the business of investing, on a leveraged basis, in a diversified portfolio of real estate assets, including mortgage loans, Non-Agency RMBS, Agency CMBS, Agency RMBS, and other real estate assets.

Please visit www.chimerareit.com for additional information about the Company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210301005826/en/

FAQ

What is the total amount of the CIM 2021-R1 securitization?

The total amount of the CIM 2021-R1 securitization is $2.1 billion.

What is the weighted average cost of debt for the new securitizations by Chimera?

The expected weighted average cost of debt for the new securitizations is 2.04%.

What securities were issued by CIM 2021-R1 and CIM 2021-NR1?

CIM 2021-R1 issued senior securities with a balance of approximately $1.8 billion, while CIM 2021-NR1 issued senior securities with a balance of around $163 million.