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 - ------------------------------- --------------------- --------------------- (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 --------------------------------------------------- (Address of principal executive offices) (Zip Code) (816) 237-7000 -------------- (Registrant's telephone number, including area code) Not Applicable -------------- (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. 2
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 ----------------------------------------- Gregory S. Metz Chief Financial Officer 3