Published:
Impac Mortgage Holdings, Inc. Announces Execution of Letter of Intent for a Committed Term Financing Facility
IRVINE, Calif., July 3 /PRNewswire-FirstCall/ -- Impac Mortgage Holdings,
Inc. (NYSE: IMH), or the "Company" aMaryland corporation, being taxed as a
real estate investment trust ("REIT"), is pleased to announce the
restructuring of its existing repurchase agreement financing facility with UBS
Real Estate Securities, Inc. The Company has executed a detailed letter of
intent with UBS Real Estate Securities, Inc. to convert its sole remaining
repurchase warehouse line with a current approximate balance of $200 million
to a term facility of 12 months with extensions for up to an additional 18
months if certain targets are met. The finalization of this new facility will
remove any and all technical defaults for the Company that exist today and it
will allow the Company to manage these loans for eventual refinance, sale or
securitization through the normal course of its business operations without
the risk of any margin calls.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070305/LAM033LOGO)
In connection with restructuring the finance facility, the Company will
issue to UBS warrants to purchase 7% of the Company's outstanding common
stock, with the right to cancel warrants equal to 3% of the outstanding shares
if the Company satisfies certain thresholds. This transaction is subject to
execution of definitive agreements between the parties.
Mr. Joseph R. Tomkinson, Chairman and Chief Executive Officer of Impac
Mortgage Holdings, Inc. stated, "We are extremely pleased to have agreed upon
terms to continue the financing of remaining mortgage loans, giving the
Company more time to maximize recovery on the sale or refinance of the loans.
The anticipated finalization of this new facility will allow the Company to
focus on new initiatives and strategies. As more progress is made in
solidifying the Company's future business plans, we will update our
stockholders."
Forward-Looking Statements
This press release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements, some of which are
based on various assumptions and events that are beyond our control, may be
identified by reference to a future period or periods or by the use of
forward-looking terminology, such as "may," "will," "believe," "expect,"
"should," "could," "anticipate," "proposed," "possible," or similar terms or
variations on those terms or the negative of those terms and include
statements related to the terms of converting the Company's existing
repurchase facility with UBS to a term facility, the issuance of warrants and
the Company's ability to focus on new initiative and strategies. The
forward-looking statements are based on current management expectations.
Actual results may differ materially as a result of several factors,
including, but not limited to entering into a definitive agreement for the new
term facility with UBS; the Company's ability to maximize its recovery on the
sale or refinance the mortgage loans, which may be hindered by worsening
economic conditions in the mortgage market; potential difficulties in meeting
conditions set forth in the definitive purchase agreement, including the
ability to timely obtain or obtain at all any required consents and approvals;
the parties' timely performance of their respective pre-closing covenants and
the satisfaction of other conditions required to close, some of which may be
beyond the control of the parties; management's ability to successfully
implement future strategies and initiatives related to the proposed term
facility; and the Company's ability to successfully manage through the current
market environment.
For a discussion of these and other risks and uncertainties that could
cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the Company's Annual Report
on Form 10-K for the period ended December 31, 2007. This press release speaks
only as of its date and we do not undertake, and specifically disclaim any
obligation, to publicly release the results of any revisions that may be made
to any forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.
About the Company
Impac Mortgage Holdings, Inc. is a mortgage REIT, which through its Long
Term Investment Operations is primarily invested in non-conforming Alt A
mortgage loans (Alt-A) and to a lesser extent small balance commercial and
multi-family loans. The Company is organized as a REIT for tax purposes,
which generally allows it to pass through earnings to stockholders without
federal income tax at the corporate level.
For additional information, questions or comments, please call Justin
Moisio in Investor Relations at (949) 475-3988 or email
jmoisio@impaccompanies.com. Web site: http://www.impaccompanies.com
SOURCE Impac Mortgage Holdings, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: Banking and Finance, Real Estate, california, maryland
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