Thornburg Extends Deadline for Tender Offer

Thornburg Mortgage, Santa Fe, N.M., has received approval to extend the deadline for completing its preferred stock tender offer to Sept. 30. Holders of approximately 93% of the contributions to an escrow agreement established as part of the conversion offer have agreed to retain their funds in escrow until the new deadline. The extension gives Thornburg more time to complete its tender offer for the preferred stock as agreed to in a March financing transaction designed to improve the company's liquidity. Under the terms of the offer, holders of four series of Thornburg's preferred stock will receive $5 in cash and 3.5 shares of common stock for each preferred share. Thornburg said that upon completion of the tender offer, the annual interest rate on its senior subordinated secured notes due in 2015 will be lowered from 18% to 12%, saving the company $69 million annually in interest payments.