Terms

Series

8.00% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

8%

Rate Type

Fixed To Floating

Annual Dividend

$2.00

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

March 30, 2024

First Call Price

$25.00

Capital Stack Ranking

Junior To: Any Senior Stock, All Existing And Future Indebtedness Of Chimera Investment Corporation, All Indebtedness And Liabilities Of Existing And Future Subsidiaries; Pari Passu With: Series A Preferred Stock (8.00% Cumulative Redeemable), Series B Preferred Stock (8.00% Fixed-To-Floating), Series C Preferred Stock (7.75% Fixed-To-Floating), Any Other Parity Stock; Senior To: Common Stock, Any Junior Stock

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

7,400,000

Prospectus Summary

Chimera Investment Corporation (NYSE: CIM), a mortgage REIT, is issuing 7,400,000 shares of its 8.00% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock with a $25.00 liquidation preference per share. Dividends are fixed at 8.00% per annum ($2.00/share annually, $0.50 quarterly) through March 29, 2024, then reset quarterly to three-month LIBOR plus 537.9 basis points. The first call date is March 30, 2024 at $25.00 per share. This is a cumulative preferred, meaning any missed dividends accumulate and must be paid in full before Chimera can resume distributions on common stock or junior securities — providing meaningful downside protection for income investors. The Series D Preferred Stock ranks senior to Chimera's common stock and any future junior stock, and on parity with the existing Series A (8.00%), Series B (8.00% fixed-to-floating), and Series C (7.75% fixed-to-floating) preferred series. However, it ranks junior to all of Chimera's existing and future debt obligations and, critically, is effectively junior to all liabilities of Chimera's operating subsidiaries, which hold the mortgage assets. There is no bank regulatory capital call provision — Chimera is a REIT, not a bank holding company — but there is a special optional redemption right allowing Chimera to redeem at $25.00 plus accrued dividends within 120 days of a Change of Control. Upon a Change of Control, holders may alternatively convert into common stock at up to 2.72035 shares per preferred share. At the $25.00 offering price, the fixed-period yield is exactly 8.00%. Dividends are paid quarterly on March 30, June 30, September 30, and December 30, with record dates set by the board between 10 and 35 days prior to each payment date. Because Chimera is a REIT, dividends are generally characterized as ordinary REIT distributions rather than qualified dividend income (QDI), meaning they typically do not qualify for the 15%/20% preferential tax rate for individual investors or the dividends-received deduction for corporate holders. If Chimera fails to pay dividends for six or more quarterly periods, holders gain the right to elect two additional board directors — a structural check, though not a hard payment stopper on junior securities.

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 dividends on the Series D Preferred Stock for six or more quarterly periods (whether or not consecutive), holders gain the right to elect two additional board members; as a cumulative preferred, unpaid dividends accumulate and must be paid before any dividends can be paid on common stock or other Junior Stock.

Other Preferreds from Chimera Investment Corporation

Div Score Breakdown

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