In an effort to avoid bankruptcy and meet margin calls, Thornburg Mortgage (NYSE TMA) has raised $1.35 billion from a sale of debt and warrants.
TMA reports that it has received $1.15 billion, with a remaining $200 million being held in escrow pending a preferred stock tender offer.
TMA reports the new subordinated secured notes will carry an initial interest rate of 18 percent.
According to TMA, current shareholders will see their holdings in TMA significantly diluted with common shareholders holding roughly 5.5 percent of the common stock upon completion of the financing arrangements.
Thornburg Private Placement Thornburg receives extension to raise capital