Thornburg Mortgage produces new cash plan
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mortgage lenders, Thornburg Mortgage March 26th, 2008Thornburg Mortgage Inc., which said March 19 that it faced a seven-day deadline to raise $948 million, has announced on the sixth day a new plan to raise the cash after the failure of a first effort.
The original plan would have raised $1 billion in convertible notes at a 12 percent interest rate. A market wary of mortgage-backed securities balked at the offer, and the company has now turned to a $1.35 billion private-placement deal at a higher, 18 percent interest rate.
The $1.35 billion in senior subordinated notes could move to a 12 percent interest rate if certain requirements, not detailed in the company’s news release, are met.
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Tags: mortgage lenders, Thornburg Mortgage
