From the initial paperwork the initial coupon on this was lowered to 8%–FINRA which had the 8.125% obviously ‘misspoke’.
The spread, which will be added to 3 month Libor starting 3/30/2024 is 5.379%–a reasonable spread we think.
In spite of the lower coupon we will have an interest in this issue.
As most investors probably know this issue will be unrated. As with all mortgage REIT preferreds the dividends will be cumulative and non qualified for preferential tax treatment.
NOTE–PLEASE IGNORE DATA FOUND ON THE FINRA SITE AS I SEE IT IS STILL INCORRECT.
mREIT Chimera Investment (NYSE:CIM) has priced a new fixed-to-floating rate preferred at an initial coupon of 8.125%. This is higher than we believed would be necessary, by .125%.
The issue will trade tomorrow on the Grey Market under the temporary ticker of CMIMP. We have an interest in this offering depending on the spread which has not been released.
MORE TO COME. FURTHER DETAILS NOT RELEASED, BUT WE WANTED TO GET THESE FEW DETAILS OUT. SEC AND COMPANY PRESS RELEASES HAVE NOT BEEN COMPLETED.