Impac Mortgage Holdings,Inc. (OTCMKTS:IMPHO) Files An 8-K Entry into a Material Definitive AgreementItem 9.01 Entry into a Material Definitive Agreement.
On August17, 2017,Impac Mortgage Corp. (the “Borrower”), a subsidiary of Impac Mortgage Holdings,Inc. (the “Company”), issued a Line of Credit Promissory Note with Merchants Bank of Indiana (the “Lender”) providing for a revolving line of credit of $30.0 million (the “Line of Credit”). The Borrower is able to borrow up to 55% of the fair market value of Freddie Mac pledged mortgage servicing rights. The Loan of Credit has a term until May31, 2018 and will automatically renew for subsequent one year periods unless the Lender provides the Borrowers 150 days’ notice of its intention not to renew. Interest payments are payable monthly and accrue interest at the rate per annum equal to LIBOR plus 4.0% and the balance of the obligation may be prepaid at any time. The obligations under the Line of Credit are secured by Freddie Mac pledged mortgage servicing rights and Integrated Real Estate Services,Inc. is a guarantor.
The Loan Agreement is subject to customary affirmative and negative covenants of the Borrower, including financial covenants related to adjusted tangible net worth and leverage ratios, among others. Upon an event of default that is not cured, if applicable, all outstanding amounts under the Line of Credit may become immediately due and payable.
The description of the terms and conditions of the Loan Agreement set forth herein do not purport to be complete and are qualified in their entirety by reference to the terms of the Line of Credit Promissory Note Agreement.
Item 9.01 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 9.01 of this Current Report is hereby incorporated by reference into this Item 9.01.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
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10.1 |
Line of Credit Promissory Note with Merchants Bank of Indiana, dated August17, 2017. |
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10.2 |
Security Agreement executed by Impac Mortgage Corp. in favor of Merchants Bank of Indiana, dated August17, 2017. |