Impac to skip dividend on 9.125%, 9.375% preferreds, trust preferreds, plans offer for trust preferreds

New York, Dec. 10 - Impac Mortgage Holdings, Inc. said it will not pay the fourth quarter dividend on its 9.375% series B cumulative redeemable preferred stock and its 9.125% series C cumulative redeemable preferred stock. It will also defer the payment of interest on its four series of trust preferred securities, Impact Capital Trusts #1, #2, #3 and #4. The payment is due Dec. 30 on Trust #3 and Jan. 30 on the other three.

Impact also said it plans to offer $100 for each $1,000 of trust preferreds outstanding. That offer will expire on Dec. 30.

The unpaid dividends on the preferred stock will accumulate. If Impac fails to pay dividends for six or more quarters then preferred stock holders will be entitled to elect two additional directors to the board until all dividends are paid.

Deferral of interest on the trust preferreds is not an event of default. Impact has the right to defer payments for four consecutive quarters on Trusts #1, #2 and #3 and for 20 consecutive quarters on Trust #4. While deferred, interest on the trust preferreds will bear additional interest at the respective coupon rate.

Impact is an Irvine, Calif., mortgage real estate investment trust primarily invested in non-conforming Alt A mortgage loans and to a lesser extent small balance commercial and multi-family loans.

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