Terms

Series

7.75% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7.75%

Rate Type

Fixed To Floating

Annual Dividend

$1.94

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

September 30, 2025

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness Of Chimera Investment Corporation, Indebtedness Of Existing And Future Subsidiaries, Any Future Senior Stock; Pari Passu With: Series A Preferred Stock (8.00% Cumulative Redeemable), Series B Preferred Stock (8.00% Fixed-To-Floating Rate Cumulative Redeemable), Any Future Parity Stock; 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

10,000,000

Prospectus Summary

Chimera Investment Corporation (NYSE: CIM), a publicly traded mortgage REIT, is offering 10,000,000 shares of its 7.75% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock with a $25.00 liquidation preference. Dividends accrue at a fixed 7.75% per annum ($1.9375/share annually, ~$0.484375/quarter) through September 29, 2025, then convert to a floating rate of three-month LIBOR plus 4.743% per annum. The first call date is September 30, 2025 at par. The stock is cumulative, meaning any unpaid dividends accrue and must be paid in full before any distributions can be made to common stockholders. The Series C Preferred Stock ranks senior to Chimera's common stock and any future junior stock, and on parity with the existing Series A (8.00% fixed) and Series B (8.00% fixed-to-floating) preferred stock. It is effectively junior to all existing and future debt obligations of Chimera and its subsidiaries—a material structural subordination risk given Chimera's highly leveraged balance sheet ($19.6 billion in liabilities against $3.65 billion in equity). There is no regulatory (Tier 1 capital) call provision, as Chimera is a REIT, not a bank. However, the issuer may redeem prior to 2025 to preserve REIT qualification for tax purposes, or optionally within 120 days of a qualifying Change of Control event. At the $25.00 offering price, the fixed-period yield is 7.75%. Dividends are paid quarterly on March 30, June 30, September 30, and December 30, with record dates set 10–35 days prior to each payment date. Because Chimera is a REIT, dividends will generally be treated as ordinary income rather than qualified dividend income (QDI), meaning they typically do not qualify for the preferential 15%/20% QDI tax rate for individuals or the dividends-received deduction (DRD) for corporate holders. If Chimera misses six or more quarterly dividend payments, preferred holders gain the right to elect two board directors—but the cumulative structure ensures all arrears must be satisfied before common dividends can resume.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Chimera fails to pay cumulative dividends on the Series C Preferred Stock, it may not pay dividends on its common stock or any junior stock; after six missed quarterly dividend periods, holders gain the right to elect two directors to the board.

Other Preferreds from Chimera Investment Corporation

Div Score Breakdown

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