Impac Restructures Repo Pact

Impac Mortgage Holdings, Irvine, Calif., has restructured its repurchase agreement financing facility with UBS Real Estate Securities Inc. The deal is contingent on the signing of a definitive agreement. Impac's remaining repurchase warehouse line, which has a balance of $200 million, will become a term facility with a 12-month period, with options to extend it for 18 months if certain targets are met. The new facility will remove any and all technical defaults Impac has. It will also allow Impac to manage the loans in the facility for eventual refinancing, sale, or securitization while taking away the risk of margin calls. UBS will receive warrants to buy 7% of Impac's common stock, and there is a right to cancel warrants equal to 3% of the company's outstanding common stock if Impac satisfies certain thresholds. Joseph R. Tomkinson, Impac's chairman and chief executive, said the new facility will give the company "more time to maximize recovery on the sale or refinance" of the mortgage loans and enable it "to focus on new initiatives and strategies."