Company: CIMO
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001409493-25-000028
Chunk: 174

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 174
---
 ongoing uncertainty related to global trade dynamics, fiscal and monetary policy, inflation, labor market conditions, economic growth and geopolitical tensions. Consistent with that approach, we were tactical with respect to raising liquidity this quarter to fund the acquisition of HomeXpress (the “HomeXpress Acquisition”) that closed on October 1, 2025. We chose to raise liquidity by 

54

staggered sales of select assets, some of which we sourced from our Agency RMBS liquidity allocation and the other from what we viewed to be fully priced Non-Agency RMBS positions. Separately, we also issued unsecured debt.

In addition, we took a number of strategic actions during the quarter designed to continue expanding our platform capabilities and repositioning the investment portfolio consistent with our long-term objectives, including:

◦completed the acquisition of HomeXpress on October 1, 2025 for $240 million in cash, comprised of an estimated adjusted book value of $120 million (subject to certain post-closing adjustments) and a premium of $120 million, plus the issuance of 2,077,151 shares of our common stock;

◦issued and closed on $120 million of 8.875% senior notes due 2030 (including $5 million from the exercise of an over-allotment option) in mid-September;

◦purchased $1.2 billion (with $187 million settling in the fourth quarter) and sold $911 million in Agency RMBS, resulting in a net increase of $275 million for the quarter;

◦sold $261 million of retained bonds related to our securitizations ($237 million RPL and $25 million Non-QM and investor loans) for $231 million in proceeds, generating $72 million in net liquidity after secured financing repayments, these bonds were converted into securitized debt;

◦sold $104 million of Non-Agency RMBS subordinate securities, $88 million of Non-Agency senior securities and $164 million of Agency CMBS IO positions for approximately $134 million in total gross proceeds, generating $44 million in net liquidity after secured financing repayments;

◦generated $9 million in revenue attributable to investment management and third-party advisory services; 

◦closed and acquired $6.5 billion of Fannie Mae mortgage servicing rights through a third-party servicing partnership; and 

◦added $1.6 billion in swaps with varying tenors as part of the hedging framework associated with the Agency RMBS portfolio, and added $600 million