Thornburg Raises $123M From Stack Offering

Thornburg Mortgage here has priced a follow-on offering of 4,000,000 shares of common stock at $30.80 per share. Gross proceeds from the transaction were $123.2 million and will be primarily used to fund adjustable-rate loans originated by the company and to purchase additional adjustable-rate mortgage securities, the company said in a news release.

The aggregate net proceeds to Thornburg are estimated to be approximately $117.3 million after taking into account the costs of issuance.

Citigroup Global Markets acted as the book-running lead manager for the transaction. A.G. Edwards & Sons Inc., Piper Jaffray & Co., RBC Capital Markets Corp. and Flagstone Securities acted as co-managers.

The company has granted the underwriters an option, exercisable for 30 days, to purchase up to 600,000 additional shares of common stock to cover overallotments.

If the underwriters' option is exercised, the additional net proceeds will be approximately $17.6 million.

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