Annaly Capital Management Announces the Filing of Registration Statement on Form S-11 for an Initial Public Offering of Chimera Investment Corporation

NEW YORK--(BUSINESS WIRE)--

Annaly Capital Management, Inc. (NYSE: NLY) today announced the filing of a registration statement on Form S-11 with the Securities and Exchange Commission for an initial public offering of the common stock of Chimera Investment Corporation. Chimera is a newly-formed specialty finance company that will invest in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. Chimera will be externally managed by Fixed Income Discount Advisory Company, or FIDAC, a wholly-owned subsidiary of Annaly, a New York Stock Exchange-listed real estate investment trust (REIT). Concurrent with this offering, Annaly will acquire 9.8% of Chimera's outstanding shares of common stock after giving effect to the shares issued in the offering, excluding shares sold pursuant to the underwriters' exercise of their overallotment option. Chimera intends to elect and qualify to be taxed as a REIT for federal income tax purposes.

Merrill Lynch & Co. will act as the sole lead manager and book-runner for the proposed offering. The public offering will be made only by means of a prospectus which, when available, may be obtained by writing or calling Merrill Lynch & Co., 4 World Financial Center, New York, NY 10080, Attention: Prospectus Department (Tel: 212-449-1000).

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

About Annaly Capital Management, Inc.

Annaly manages assets on behalf of institutional and individual investors worldwide through Annaly and through the funds managed by its wholly-owned registered investment advisor, FIDAC. Annaly's principal business objective is to generate net income for distribution to investors from the spread between the interest income on its mortgage-backed securities and the cost of borrowing to finance their acquisition and from dividends Annaly receives from FIDAC, which earns investment advisory fee income. Annaly is a Maryland corporation that has elected to be taxed as a REIT.

Source: Annaly Capital Management, Inc.