By Evan Weinberger
New York, Jan. 15 - Thornburg Mortgage Inc. priced an upsized $156 million addition to its existing 10% series F cumulative convertible redeemable preferred stock at $19.50 per share Monday after market close.
Thornburg originally said that it would price a $112.5 million, 4.5 million share add-on to the existing preferreds last week.
Thornburg will add 8 million shares to the existing preferreds.
Friedman, Billings, Ramsey and UBS Investment Bank are joint bookrunners of the Securities and Exchange Commission registered transaction.
Thornburg priced a concurrent issue of 7 million shares of common stock at $8 per share.
There is a 1.2 million share, $22.23 million over-allotment option on the preferreds. The common stock offering has a 1.05 million share, $7.98 million greenshoe.
The two offerings are expected to provide net proceeds of $200.8 million to Thornburg Mortgage.
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%. The conversion price is $11.50, or 2.1739 shares per preferred share.
Thornburg stock (NYSE: TMA) closed Monday at $8.19.
Thornburg Mortgage is a Santa Fe, N.M.-based mortgage lender specializing in jumbo and super-jumbo adjustable-rate mortgages (ARMs). The company plans to use the majority of the proceeds to finance the acquisition or origination of ARMs. The rest will be used for liquidity needs and working capital.
Issuer: Thornburg Mortgage Inc.
Issue: Series F cumulative convertible redeemable preferred stock
Amount: $156 million (8 million shares)
Greenshoe: $22.23 million
Maturity: Perpetual
Dividend: 10%
Price: $19.50 (versus par of $25.00)
Conversion price: $11.50
Conversion ratio: 2.1739
Bookrunners: Friedman, Billings, Ramsey and UBS Investment Bank
Distribution: SEC registered
Pricing date: Jan. 14
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