NEW YORK--(BUSINESS WIRE)--
Annaly Capital Management, Inc. (NYSE: NLY), today announced that
Chimera Investment Corporation has agreed to sell 33,333,334 shares of
common stock in its initial public offering at a price of $15.00 per
share, for a total offering of $500 million. Chimera Investment
Corporation will be externally managed by Fixed Income Discount
Advisory Company, a wholly-owned subsidiary of Annaly.
The offering is expected to close on November 21, 2007. Concurrent
with this offering, Annaly will acquire 9.8% of Chimera Investment
Corporation's outstanding shares of common stock after giving effect
to the shares issued in this offering, excluding shares sold pursuant
to the underwriters' exercise of their over-allotment option. The
shares of Chimera Investment Corporation common stock are scheduled to
begin trading on November 16, 2007 on the New York Stock Exchange
under the symbol "CIM".
Merrill Lynch & Co., Credit Suisse and Deutsche Bank Securities
are acting as joint book-running managers, with JPMorgan, Keefe,
Bruyette & Woods and Bear, Stearns & Co. Inc. acting as co-managers.
Chimera Investment Corporation has granted the underwriters a 30-day
option to purchase up to an additional 5,000,000 shares of Chimera
Investment Corporation's common stock to cover over-allotments, if
any.
A registration statement relating to the common stock was filed
with, and declared effective by, the U.S. Securities and Exchange
Commission on November 15, 2007. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of the common shares in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction. The offering is being made
solely by means of a prospectus. Copies of the prospectus can be
obtained from Merrill Lynch's prospectus department at 4 World
Financial Center, New York, NY 10080; Phone 212-449-1000.
About Chimera Investment Corporation
Chimera Investment Corporation 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 and intends to elect and qualify to be taxed as a
real estate investment trust, or REIT, for federal income tax
purposes. Chimera Investment Corporation will be externally managed by
Fixed Income Discount Advisory Company, a wholly-owned subsidiary of
Annaly.
About Fixed Income Discount Advisory Company
Fixed Income Discount Advisory Company ("FIDAC"), a wholly-owned
subsidiary of Annaly, is an investment advisor registered with the
Securities and Exchange Commission. FIDAC is a fixed-income investment
management company that specializes in managing interest rate and
credit-sensitive fixed income strategies.
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.
Forward-Looking Statements
This news release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements which are based on various assumptions (some of which are
beyond Annaly's and Chimera Investment Corporation's control) may be
identified by reference to a future period or periods or by the use of
forward-looking terminology, such as "may," "will," "believe,"
"expect," "anticipate," "continue," or similar terms or variations on
those terms or the negative of those terms. Actual results could
differ materially from those set forth in forward-looking statements
due to a variety of factors, including, but not limited to, changes in
interest rates, changes in yield curve, changes in prepayment rates,
the availability of mortgage-backed securities for purchase, the
availability of financing and, if available, the terms of any
financing, changes in the market value of Annaly's assets, changes in
business conditions and the general economy, FIDAC's clients' removal
of assets FIDAC manages, FIDAC's regulatory requirements, and
competition in the investment management business, changes in
government regulations affecting Annaly's and Chimera Investment
Corporation's businesses, and their ability to maintain their
respective qualifications as a REIT for federal income tax purposes.
For a discussion of the risks and uncertainties which could cause
Annaly's actual results to differ from those contained in the
forward-looking statements, see "Risk Factors" in Annaly's Annual
Report on Form 10-K for the fiscal year ended December 31, 2006, in
Annaly's Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2007, in Annaly's Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2007 and in Annaly's Quarterly Report on
Form 10-Q for the fiscal quarter ended September 30, 2007. For a
discussion of the risks and uncertainties which could cause Chimera
Investment Corporation's actual results to differ from those contained
in the forward looking statements, see Chimera Investment
Corporation's Registration Statement on Form S-11 relating to its
initial public offering, including under the headings "Risk Factors,"
"Special Note Regarding Forward Looking Statements" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations." Annaly and Chimera Investment Corporation do not
undertake, and specifically disclaim any obligation, to publicly
release the result of any revisions which may be made to any
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such
statements.
Source: Annaly Capital Management, Inc.
Contact: Annaly Capital Management, Inc.
Investor Relations, 888-8Annaly
www.annaly.com