Cherry Hill Mortgage Investment Corp. to Pay Previously Announced Quarterly Dividend on Common Stock of $0.40 Per Share 50% i...
March 27 2020 - 2:29PM
Business Wire
Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) (the
“Company”) announced today that it has decided to pay its
previously declared cash dividend for the first quarter of 2020 of
$0.40 per share of common stock, in a combination of cash, not to
exceed 50% in the aggregate, and common stock. As previously
announced by the Company on March 12, 2020, the dividend will
continue to be payable on April 28, 2020 to stockholders of record
as of the close of business on March 31, 2020.
The Company also announced that it will pay the previously
declared dividends on its 8.20% Class A Cumulative Redeemable
Preferred Stock and its 8.250% Class B Fixed-to-Floating Rate
Cumulative Redeemable Preferred Stock in cash in the ordinary
course.
In accordance with Internal Revenue Service guidelines,
stockholders will be asked to make an election to receive this
dividend all in cash or all in Cherry Hill common stock. To the
extent that more than 50% cash is elected, the cash portion will be
prorated. Stockholders who do not make an election will receive the
dividend all in common stock. The election deadline is April 14,
2020. Shares will be priced at the volume weighted average trading
prices of Cherry Hill’s common stock on the New York Stock Exchange
between April 15, 2020 and April 17, 2020. The Company expects the
dividend to be taxable to its stockholders. Cherry Hill reserves
the right to pay the dividend entirely in cash.
An information letter and election form will be mailed to
stockholders of record promptly after March 31, 2020.
“Due to the significant market volatility related to the
COVID-19 pandemic since we announced our first quarter common share
dividend two weeks ago, the Board made the difficult but prudent
decision to change the form of the common stock dividend in order
to preserve liquidity,” said Jay Lown, President and Chief
Executive Officer of Cherry Hill Mortgage Investment Corporation.
“We have satisfied all margin calls received to date under our
financing arrangements while increasing the Company’s unencumbered
cash position as of March 26, 2020 by more than 300% from the level
of $24.7 million as of December 31, 2019.”
The Company cannot provide any assurances that the rapidly
evolving macroeconomic conditions will not impact the Company.
About Cherry Hill Mortgage Investment Corporation Cherry
Hill Mortgage Investment Corporation is a real estate finance
company that acquires, invests in and manages residential mortgage
assets in the United States. For additional information, visit
www.chmireit.com.
Forward-Looking Statements
This press release contains forward looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 and other federal securities laws, including, among others,
statements relating to the Company’s long-term growth opportunities
and strategies, expand its market opportunities and create its own
Excess MSRs and its ability to generate sustainable and attractive
risk-adjusted returns for stockholders. These forward-looking
statements are based upon the Company’s present expectations, but
these statements are not guaranteed to occur. For a description of
factors that may cause the Company's actual results or performance
to differ from its forward-looking statements, please review the
information under the heading “Risk Factors” included in the
Company's Annual Report on Form 10-K for the year ended December
31, 2019, and other documents filed by the Company with the
Securities and Exchange Commission.
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