Company: CIMO
Filing Date: 2025-06-12
Form Type: 8-K
Source: 0001193125-25-139533
Chunk: 0

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-06-12
Form: 8-K
Item: Item 1.01
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Item 1.01.      Entry into a Material Definitive Agreement.  

On June 11, 2025, Chimera Investment Corporation (“ Chimera”), a Maryland corporation, entered into a Stock Purchase Agreement to acquire (the “ Acquisition”) HomeXpress Mortgage Corp. (“ HomeXpress”), a Delaware corporation. Pursuant to the Stock Purchase Agreement, Chimera will acquire (i) all of the outstanding equity interests in HX Holdco Corp. (“ Holdco”), a Delaware corporation and parent of HomeXpress, from the Holdco Sellers as defined in the Stock Purchase Agreement, and (ii) certain equity interests in HomeXpress held by the Management Sellers as defined in the Stock Purchase Agreement (the Management Sellers and the Holdco Sellers are collectively referred to as the “ Sellers”). Upon consummation of the Acquisition, Chimera will own, directly and indirectly through Holdco, 100% equity interest in HomeXpress. Immediately following the execution of the Stock Purchase Agreement, Chimera will assign the Stock Purchase Agreement to its taxable REIT subsidiary, Chimera Funding TRS LLC, a Delaware limited liability company, to acquire HomeXpress.

As consideration for the Acquisition, Chimera will pay to the Sellers a purchase price consisting of (i) cash in an amount that equals the adjusted book value of Holdco and its subsidiaries, including HomeXpress, as of the closing of the Acquisition (the “ Closing”), subject to certain adjustments in accordance with the terms of the Stock Purchase Agreement, plus (ii) a premium consisting of (a) $120 million in cash and (b) 2,077,151 shares of the common stock, par value $0.01 per share, of Chimera. Chimera expects to file with the SEC a registration statement on Form S-4to cover the issuance of the common stock portion of the purchase price.

In addition, concurrently with the execution of the Stock Purchase Agreement, Kyle Walker, HomeXpress’ current President and Chief Executive Officer, has executed an employment agreement (the “ Key Employee Agreement”) to continue serving as President and Chief Executive Officer of HomeXpress following the Closing.

The Stock Purchase Agreement contains customary representations, warranties and covenants of the parties and a representations and warranties insurance policy is the primary source of recourse for breaches of representations and warranties that do not relate to mortgage loans sold or held for sale by HomeXpress (for which recourse is provided through an indemnity that is limited to an escrowed amount of $5,000