Thornburg Reaches Deal on Margin Calls

Thornburg Mortgage has entered a 364-day agreement with five of its remaining reverse repurchase counterparties and their affiliates that conditionally reduces margin requirements for financing the company's mortgage securities and suspends the counterparties' right to invoke further margin calls and related rights under their reverse repurchase agreements. The reverse repurchase agreement counterparties and their affiliates who entered the override agreement with Thornburg Mortgage include Bear Stearns Investment Products Inc., Citigroup Global Markets Ltd., Credit Suisse Securities (USA) LLC, Credit Suisse International, Greenwich Capital Markets Inc., Greenwich Capital Derivatives, Royal Bank of Scotland PLC, and UBS Securities LLC. "The continued effectiveness of this agreement is contingent upon a variety of factors that are specified in the agreement, the most urgent of which requires that within seven business days Thornburg Mortgage raise a minimum of net proceeds of $948 million in new capital," the company said.