Impac Mortgage exchanges $8.5 million trust preferreds for shares

By Wendy Van Sickle

Columbus, Ohio, May 11 – Impac Mortgage Holdings, Inc. said it exchanged $8.5 million of trust preferred securities at a discount to par for 412,264 shares of its common stock.

The interest rate on the trust preferred securities was Libor plus 375 basis points for an effective rate of 4¾% at Dec. 31.

The exchange was made under a May 5 agreement with some investors, who also received $14,000 of accrued interest.

In October 2005, Impac Mortgage formed Impac Capital Trust #4 as a special purpose entity to issue $20.6 million of trust preferred securities. Impac Mortgage issued subordinated deferrable interest debentures to the trust due July 30, 2035 in exchange for the proceeds of the offering of the trust preferred securities.

As a result of the exchange of trust preferred securities for stock, Impac Mortgage will cancel $8.5 million of those subordinated debentures.

Impac Mortgage is primarily invested in non-conforming mortgage loans and, to a lesser extent, small balance commercial and multi-family loans. The company is based in Irvine, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.