SANTA FE, N.M. - (Business Wire) Thornburg Mortgage, Inc. (NYSE: TMA) announced that it has received consents, effective September 30, 2008, from the holders of approximately 98.5% of the aggregate principal amount outstanding of the Senior Subordinated Secured Notes to accept the September 30
th interest payment in respect of their notes in the form of additional Senior Subordinated Secured Notes in principal amount equal to the cash interest payable. All Senior Subordinated Secured Notes will continue to bear interest at a rate of 18% per annum until the Triggering Event (as defined in the company
’s Purchase Agreement dated March 31, 2008 with the investor parties thereto) is satisfied. As consideration for their consents, consenting holders will receive a consent fee, at their election, of either (i) 6.5217 shares (after giving effect to the one-for-ten reverse split of our common stock effective on September 26, 2008) of our common stock in respect of each $1,000 principal amount of the Senior Subordinated Secured Notes (the
“Consent Stock
”) or (ii) additional Senior Subordinated Secured Notes with an aggregate principal amount equal to the market value of the total number of shares of Consent Stock on the date of issuance to which such holder would have been entitled.
Thornburg Mortgage is a leading single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable-rate mortgages.
Thornburg Mortgage, Inc., Santa Fe
Investor Relations
505-989-1900
ir@thornburgmortgage.com
or
Media contact
Suzanne O’Leary Lopez
505-467-5166
