Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
May 18, 2007
Date of Report (Date of earliest event reported)
NOVASTAR FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Maryland 001-13533 74-2830661
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification Number
8140 Ward Parkway, Suite 300, Kansas City, MO 64114
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(Address of principal executive offices)
(Zip Code)
(816) 237-7000
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(Registrant's telephone number, including area code)
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Section 1--Registrant's Business and Operations
Item 1.01 Entry into a Material Definitive Agreement.
Extensions of Existing Wachovia Facilities
On May 18, 2007, NovaStar Financial, Inc. and certain of its affiliates
(collectively, "NovaStar") entered into short-term extensions of two existing
one-year Master Repurchase Agreements with Wachovia Bank, NA and certain of its
affiliates (collectively "Wachovia"). One facility sets forth the terms under
which certain NovaStar entities may sell and Wachovia may purchase certain
mortgage securities and the other sets fort the terms under which certain
NovaStar entities may sell and Wachovia may purchase certain mortgage loans, in
each case against an obligation of the relevant NovaStar entity to repurchase
the mortgage loans or mortgage securities purchased by Wachovia. The termination
date of these facilities was extended to May 25, 2007. In addition to the
financing facilities described in this Current Report, Wachovia routinely
engages in other orinary course financial transactions with NovaStar, including
but not limited to acting as an underwriter for certain securitizations
sponsored by NovaStar.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NOVASTAR FINANCIAL, INC.
DATE: May 23, 2007 /s/ Gregory S. Metz
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Gregory S. Metz
Chief Financial Officer
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