Thornburg Mortgage prices $156 million add-on to convertible preferreds at $19.50

New York, Jan. 14 - Thornburg Mortgage Inc. priced a $156 million add-on offering of convertible preferred shares on Monday after the close.

The company sold 8 million preferreds at $19.50 each.

Thornburg also priced 7 million shares at $8.00 apiece.

The preferreds are a reopening of the company's existing issue of 10% preferreds priced last August.

The conversion price is $11.50, or 2.1739 shares per preferred share.

In total the offerings raised $212 million.

There is a greenshoe for 1.2 million preferred shares for $22.23 million and 1.05 million common shares for $7.98 million.

Friedman Billings Ramsey and UBS Investment Bank are joint bookrunners for the preferreds.

Last August, Thornburg priced $500 million in series F cumulative convertible redeemable preferred stock, with a base dividend rate of 10% or the dividend yield on Thornburg common stock and an initial conversion premium of 3%.

Proceeds will be used to buy additional adjustable-rate mortgage assets and for liquidity and general corporate purposes.

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

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