IMC Snags $50MM Investment

IMC Mortgage Co., Tampa, Fla., has announced that Travelers Casualty and Surety Co. and Greenwich Street Capital Partners II LP have invested $50 million in the company's Series A convertible preferred stock.The stock bears no dividend and is redeemable by IMC over a three-year period beginning in 10 years (if not previously converted). Greenwich Street, a merchant banking fund in which subsidiaries of Travelers Group Inc. have invested, and Travelers Casualty, itself a Travelers Group subsidiary, have also been given an option to buy, within three years, an additional $30 million of Series B preferred stock at par, with a conversion price into common stock of $22.50. Following the announcement, subprime lender IMC's stock price surged more than 30% to close at $13.50 on Wednesday, and stood at $13.375 at mid-day Thursday. IMC's website address is http://www.industrymortgage.com and Travelers Group's is http://www.travelers.com.