Thornburg lacks funds to make interest payment on 8% senior notes

By Caroline Salls

Pittsburgh, Nov. 19 - Thornburg Mortgage, Inc. did not make the Nov. 15 interest payment on its 8% senior notes because it does not have available funds to do so, according to a company news release.

The company said it is in negotiations with override agreement counterparties, and it expects to make the $12.2 million interest payment once an amended and restated agreement has been reached with the counterparties, within the 30-day payment grace period.

According to the release, Thornburg's amended exchange offer and consent solicitation for all series of its outstanding preferred stock was scheduled to expire at 5 p.m. ET on Nov. 19.

As of Tuesday, the company said it had received tenders for 72.2% of the outstanding shares of its series C preferred stock, 79.2% of the outstanding shares of its series D preferred stock, 83.2% of the outstanding shares of its series E preferred stock and 67.4% of the outstanding shares of its series F preferred stock.

Preferred stockholders that have tendered their shares can withdraw their shares at any time before Thornburg's acceptance of the shares after the expiration of the exchange offer.

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

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