This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Stock Offerings: Chimera Investment

NEW YORK ( TheStreet) -- Chimera Investment (CIM - Get Report) announced a public offering of common stock at a 4.5% discount to its last closing price, sending shares lower during Wednesday's session.

Chimera Investment said it would offer 100 million shares of common stock at $3.65 per share, below Tuesday's closing price of $3.82. Underwriters were granted a 30-day option to purchase up to an additional 15 million shares solely to cover overallotments.

Chimera said proceeds will be used to finance the acquisition of residential mortgage-backed securities (RMBS) not guaranteed by a U.S. government agency, RMBS guaranteed by a U.S. government agency, prime and Alt-A mortgage loans, commercial mortgage loans, commercial mortgage-backed securities, collateralized debt obligations, and other consumer or non-consumer asset-backed securities.

Shares of Chimera were down 13 cents, or 3.4%, to $3.69. In a research note early Wednesday, Keefe Bruyette & Woods analysts reiterated their outperform rating on Chimera shares, arguing that the transaction is likely to be have little impact on book value and earnings and that "any weakness in the shares related to this offering could present a buying opportunity."

Elsewhere, PPL Corp. (PPL - Get Report) shares rose after the energy and utility company priced an offering of 90 million shares of common stock at $24 per share. Proceeds from the offering will be use to fund a portion of the purchase price of the company's recently announced acquisition of E.ON U.S., the parent company of Louisville Gas and Electric Company and Kentucky Utilities Company.

PPL Corp. shares were up 2.9% to $24.94.

Royal Gold (RGLD - Get Report) priced an offering of 5.2 million shares of common stock at $48.50 per share, a discount of 5.4% to Tuesday's closing price. Underwriters have a 30-day option to purchase up to 780,000 additional shares of common stock to cover overallotments, if any.

Royal Gold said proceeds will be used to pay down debt, fund acquisitions and for other purposes. Royal Gold shares were down 4.8% to $48.82.

Meanwhile, Heritage-Crystal Clean (HCCI - Get Report) said underwriters for its public offering of 3 million shares of common stock have purchased an additional 450,000 shares as part of the option granted to them. Shares were down 0.9% to $8.08.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CIM $3.14 0.32%
FLIC $25.50 -0.89%
HCCI $11.70 -3.15%
PPL $33.66 0.30%
RGLD $63.11 -0.71%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs