Thornburg gets consents to make interest payment in kind

New York, Oct. 1 - Thornburg Mortgage, Inc. said it received consents from holders of 98.5% of its senior subordinated secured notes to make the payment due Sept. 30 in kind rather than cash.

The size of the payment will be the same as if it had been in cash.

In return for the consents, the Santa Fe, N.M., residential mortgage lender will pay a fee of either 6.5217 shares (after giving effect to the one-for-10 reverse split on Sept. 26) per $1,000 principal amount or additional notes with the principal amount equal to the market value of those shares.

The notes are paying interest at 18% until a triggering event is satisfied. The triggering event was defined in the March 31 purchase agreement.

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