Thornburg Mortgage shares tumble on reverse financing deal, capital needs
Add a Comment 
mortgage lenders, Thornburg Mortgage March 19th, 2008NEW YORK, Mar. 19, 2008 (Thomson Financial delivered by Newstex) — Shares of Thornburg Mortgage (NYSE:TMA) tanked Thursday after the Santa Fe, N.M., home loan provider outlined the terms of a one-year reverse repurchase override agreement that will be extremely dilutive to common shareholders.
The company also disclosed it needs to raise a minimum of $948 million in new capital in the next seven business days in order to secure the deal.
Thornburg, which also said it’s currently facing margin calls of roughly $530 million, suspended its common stock dividend for the near term.
The shares dropped almost 27% to $2.18 in recent trades, bouncing slightly after scraping a low of $2. The stock is now down about 76% since the start of the year. Volume of 19.7 million was nearing the issue’s 30-day average of 20.4 million less than an hour into the session.
Tags: mortgage lenders, Thornburg Mortgage
