Thornburg to exchange $53.5 million floaters for stock at 25% of par

By Susanna Moon

Chicago, Oct. 31 - Thornburg Mortgage, Inc. agreed to exchange up to $53.5 million principal amount of floating-rate junior subordinated notes due January 2036 and floating-rate junior subordinated notes due April 2036 for up to 8,333,240 of the company's common shares from certain holders, according to an 8-K filing with the Securities and Exchange Commission.

The exchange price for the notes is 25% of par plus accrued interest.

The number of shares to be received in the offer will equal the exchange price of the notes sold, divided by 95% of the last sale price of the shares just before the sale.

As of Oct. 31, the company said it exchanged $13 million principal amount of the notes for 2,260,841 shares.

Thornburg is a Santa Fe, N.M., lender specializing in jumbo mortgages.

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