Chimera Investment Corporation (CIM)

[MCArmel1]

Chimera Investment misses by $0.07, misses on revenue

Aug 5 2015, 16:48 ET | About: Chimera Investment Corpo... (CIM) | By: Gaurav Batavia, SA News Editor

Chimera Investment (NYSE:CIM): Q2 EPS of $0.53 misses by $0.07.
Revenue of $149.76M (+31.8% Y/Y) misses by $18.61M.
Press Release

http://seekingalpha.com/news/2699155-chimera-investment-misses-by-0_07-misses-on-revenue?uprof=45#email_link


Chimera Investment Corporation Announces Internalization of Management, $250 Million Stock Buy-Back Plan Including Immediate Repurchase of Shares from Annaly and Releases 2nd Quarter 2015 Earnings
Wed August 5, 2015 4:17 PM|Business Wire | About: CIM

• Net Income of $116 Million or $0.57 Per Share
• Core Earnings of $109 Million or $0.53 Per Share
• GAAP Book Value of $16.73 Per Share

NEW YORK--(BUSINESS WIRE)-- Chimera Investment Corporation (CIM) (Chimera or the Company) and Annaly Capital Management, Inc. (Annaly) jointly announced that, effective today, Chimera is internalizing its management function. The independent directors on Chimeras Board agreed to the internalization with Annaly in order to accelerate growth and realize cost efficiencies. Chimera will continue to be led by its key professionals including President and Chief Executive Officer Matthew Lambiase, Chief Financial Officer Rob Colligan and Chief Investment Officer Mohit Marria. In addition, Chimeras head of structured products, Choudhary Yarlagadda, was appointed Chief Operating Officer and Phillip J. Kardis II, a partner at the law firm K&L Gates LLP, was appointed General Counsel. All other personnel that focus their efforts on Chimeras business became employees of Chimera.

This transaction is an exciting new chapter in the growth of Chimera, said Matt Lambiase, Chimeras President and Chief Executive Officer. Chimera is strongly positioned to take advantage of the market opportunities in the residential mortgage credit space and the internalization represents an opportune time to transition to a standalone infrastructure company as the portfolio continues to grow. The internalization will ensure continuity of the leadership team while enhancing the Companys ability to drive shareholder value through a lower cost base, simplified structure and more focused strategy.

In connection with the internalization, Chimera entered into a transition services agreement with its external manager, Fixed Income Discount Advisory Company (FIDAC), a wholly owned subsidiary of Annaly. Under the transition services agreement, FIDAC will continue to provide the Company with certain transition services related to business support through the end of the year. No termination fee was paid by Chimera in connection with internalization.

As part of the agreement, Chimera will purchase Annalys 4.4% stake in Chimera for a purchase price of $126.4 million ($14.05 per share) as part of a new $250 million share repurchase program authorized by the Chimera Board. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The authorization does not obligate the Company to acquire any particular amount of common shares and the program may be suspended or discontinued at the Companys discretion without prior notice

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http://seekingalpha.com/pr/14325425-chimera-investment-corporation-announces-internalization-of-management-250-million-stock-buy-back-plan-including-immediate-repurchase-of-shares-from-annaly-and-releases-2nd-quarter-2015-earnings