Terms

Series

8.00% Series A Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

8%

Rate Type

Fixed

Annual Dividend

$2.00

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

October 30, 2021

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: Senior Stock (Any Future Senior Preferred Series), All Existing And Future Indebtedness Of Chimera Investment Corporation, All Indebtedness And Liabilities Of Existing And Future Subsidiaries; Pari Passu With: Parity Stock (Any Future Parity Preferred Series); Senior To: Common Stock, Junior Stock

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

5,400,000

Prospectus Summary

Chimera Investment Corporation (NYSE: CIM), a publicly traded mortgage REIT, is offering 5,400,000 shares of its 8.00% Series A Cumulative Redeemable Preferred Stock at a liquidation preference of $25.00 per share. The fixed coupon pays $2.00 per share annually ($0.50 per quarter), with the first call date on October 30, 2021 at $25.00. The security is cumulative, meaning any unpaid dividends accrue and must be satisfied in full before Chimera can resume distributions on common or junior preferred stock — providing a contractual backstop against dividend omission risk. The Series A Preferred ranks senior to Chimera's common stock and any future junior preferred, but is effectively junior to all of Chimera's existing and future debt obligations and to all liabilities of its operating subsidiaries. Because Chimera is a holding company that relies on its subsidiaries' assets, preferred holders face structural subordination — in a liquidation, subsidiary creditors are paid first, leaving preferred holders dependent on residual assets. There is no traditional bank regulatory capital call; instead, the issuer may redeem prior to October 30, 2021 solely to preserve REIT tax qualification, a narrower and more specific trigger than a Tier 1 capital event. At the $25.00 offering price, the effective yield is 8.00%, with quarterly payments on March 30, June 30, September 30, and December 30, to holders of record set 10–35 days before each payment date. As a REIT, Chimera's dividends are generally treated as ordinary income and do not qualify for the 15%/20% qualified dividend income (QDI) preferential rate for individual investors, nor the dividends-received deduction (DRD) for corporate holders. The dividend stopper prevents any common or parity stock distribution until all accumulated Series A preferred dividends are current, providing a meaningful structural protection for income investors.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Chimera has not paid full cumulative dividends on the Series A Preferred Stock for all past periods, it cannot pay dividends on or repurchase its common stock or any other junior or parity stock, except for restricted stock plan repurchases and REIT ownership-limit enforcement redemptions.

Other Preferreds from Chimera Investment Corporation

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 47 (Average)