Impac Mortgage to skip dividends on preferreds indefinitely

New York, March 31 - Impac Mortgage Holdings, Inc. said it will not be paying dividends "indefinitely" on its 9.375% series B cumulative redeemable preferred stock and 9.125% series C cumulative redeemable preferred stock.

Unpaid dividends will accumulate. If the dividends are not paid for six quarters, holders of the preferreds will be entitled to elect two additional directors to the board.

Until all the accumulated dividends are paid, the company is not permitted to pay dividends on its common stock, or redeem or buy back those shares.

Payments on the trust preferreds issued by Impac Capital Trust #4 will continue to be deferred. Impac is allowed to defer these payments for up to 20 consecutive quarters.

In addition, interest payments on Capital Trusts #1 and #3 will be at a reduced rate of 2%.

Impac is an Irvine, Calif., investor in non-conforming mortgages and to a lesser extent small balance commercial and multi-family loans.

© 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.