IRVINE, CA—Impac Mortgage Holdings Inc. has entered into a note purchase agreement issuing $20 million in original aggregate principal amount of convertible promissory notes due 2018. The notes mature on or before April 30, 2018 and accrue interest at a rate of 7.5% per annum, to be paid quarterly.

“We believe it is a major accomplishment for the company to be able to raise capital after reflecting on what has occurred over the past five years,” said Joseph Tomkinson, chairman and CEO of Impac. “Further, we believe this is a tremendous vote of confidence to raise capital at such favorable rates and terms. The additional capital allows us much greater flexibility in the overall execution of our business plan.”

The notes and conversion shares have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The notes carry an additional penalty interest rate of 2% per annum upon an event of default, and may not be prepaid, in whole or in part, by Impac without the prior written consent of the noteholders.

Impac Mortgage Holdings, Inc. provides mortgage and real estate solutions that address the challenges of today's economic environment. Impac's operations include mortgage lending and servicing, portfolio loss mitigation and real estate services as well as the management of the securitized long-term mortgage portfolio which includes the residual interest in securitizations.