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NEW YORK (AP) -- Newly formed specialty finance company Chimera Investment Corp. said Monday it plans to raise about $469 million in an initial public offering of 33.3 million shares, according to a filing with the Securities and Exchange Commission. The New York-based company filed a preliminary prospectus with the SEC in August but did not disclose any terms. Chimera expects the offering to price at $15 per share. The company has also granted the underwriters the option to buy up to an additional 5 million shares to cover any overallotments. Chimera expects IPO proceeds of about $469 million, or $539.5 million if the underwriters exercise their overallotment option in full. Concurrent with the offering, the company plans to sell about 10 percent of its outstanding shares to asset manager Annaly Capital Management Inc. Chimera, which will be classified as a real estate investment trust, plans to invest the proceeds of the offering 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 subsidiary of Annaly. Analysts expect the deal to be watched closely by investors, considering the subprime mortgage market's deterioration and other credit market woes. Kathleen Smith, principal at Greenwich, Conn.-based Renaissance Capital, said the stock performance of parent Annaly might be a good gauge for investors. Merrill Lynch & Co.; Credit Suisse; Deutsche Bank Securities; JPMorgan; Keefe, Bruyette & Woods; and Bear, Stearns & Co. are underwriting the offering. Chimera's shares have been approved for listing on the New York Stock Exchange under the symbol "CIM."
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