The 29% premium to CHMI's last close provides immediate crystallized value. Traders should monitor CHMI for convergence toward the implied deal value of ~$3.10 per share as regulatory and stockholder approvals are sought. Risk to the spread includes failure to obtain required approvals or a competing bid. The cash component ($0.93/share) provides a floor. Both boards unanimously approved, and a 734,800-share support agreement is in place, reducing execution risk.
Price Chart
Executive Summary
Cherry Hill Mortgage Investment Corporation (CHMI) entered into a definitive merger agreement with TPG Mortgage Investment Trust, Inc. (MITT). CHMI common stockholders will receive 0.3063 shares of MITT common stock and $0.93 in cash per share, implying a 29% premium to CHMI's August 7, 2026 closing price and an implied transaction value of $117.5 million. CHMI Series A and Series B preferred stock will convert into equivalent newly issued MITT preferred series with substantially the same terms.
Key Financial Metrics
Key Facts
- Each CHMI common share gets 0.3063 MITT shares + $0.93 cash ($0.41 from MITT + $0.52 from manager)
- Implied transaction value of $117.5 million, a 29% premium to CHMI's August 7 close
- CHMI Series A and B preferred stock convert 1:1 into MITT preferred with substantially same terms
- CHMI stockholders will own ~27% of combined company; MITT stockholders will own ~73%
- Transaction expected to close in Q4 2026, subject to stockholder and regulatory approvals
- Operating efficiencies of ~$7-9 million annually expected
- Combined investment portfolio estimated at $9.0 billion
- CHMI board received fairness opinion from BTIG, LLC
- MITT board received fairness opinion from Piper Sandler & Co.
- AG MIT, LLC, holding 734,800 CHMI shares, entered into voting and support agreement to vote in favor
Financial Impact
Implied transaction value of $117.5 million; CHMI stockholders receive ~$15M from MITT + $20M from manager in cash; MITT common stock consideration of 11.608 million shares at fixed exchange ratio of 0.3063
Risk Factors
- Failure to obtain CHMI or MITT stockholder approval
- Failure to obtain regulatory approvals
- Termination of merger agreement (CHMI termination fee: $4.7M; MITT termination fee: $7.99M)
- Integration risk and potential failure to realize $7-9M annual cost synergies
- Market and interest rate risk affecting deal financing or combined portfolio valuation
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (CHMI) — Batch item 1 | 0001140361-26-031930 |
| Document: ef20079827_8k.htm | 0001628280-26-054987 |
| Document: ef20079827_ex10-1.htm | 0001140361-26-031930 |
| Document: ef20079827_ex99-1.htm | 0001140361-26-031930 |
| Document: 0001140361-26-031930-index-headers.html | 0001140361-26-031930 |
| Document: 0001140361-26-031930-index.html | 0001140361-26-031930 |
| Document: 0001140361-26-031930.txt | 0001140361-26-031930 |
| 425 Filing (CHMI) — Batch item 8 | 0001628280-26-054987 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 19d ago | DEFM14A | $2.58 | awaiting T+20 | — | $2.57 (−0.39%) |
Aug 10, 2026 11w ago | 425 | $2.91 $2.92 | ▲ +0.34% | ▲ +1.40% | $2.57 (−11.68%) |
Aug 10, 2026 11w ago | 425 | $2.79 $2.97 | ▲ +6.45% | ▲ +7.37% | $2.57 (−7.89%) |
Aug 10, 2026 11w ago | 425 | $2.79 $2.97 | ▲ +6.45% | ▲ +7.37% | $2.57 (−7.89%) |
Aug 10, 2026 11w ago | 8-K | $2.79 $2.97 | ▲ +6.45% | ▲ +7.37% | $2.57 (−7.89%) |
Aug 10, 2026 11w ago | 8-K / 425 | $2.79 $2.97 | ▲ +6.45% | ▲ +7.37% | $2.57 (−7.89%) |
Apr 10, 2026 28w ago | 8-K | $20.75 $21.11 | ▲ +1.73% | ▼ −5.99% | $2.57 (−87.61%) |
Feb 25, 2026 34w ago | 8-K | $2.53 $2.63 | ▲ +4.18% | ▲ +10.59% | $2.57 (+1.69%) |
US Market Status
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