Vulture Money

TMA Raises $1.35B, Shareholders Face Dilution

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

The VIX (volatility index) retreated on Thursday, dropping more than 10% to close below the 50 day moving average.

 

The VIX closed the week at 31.16, spiking up 14.18 percent, the highest closing price since March 2003.

The VIX reached an intra-session high of 32.89, a seven week high.

The VIX has gained 80 percent in the past year.    

Investors continue to flock to gold as a hedge against inflation and the falling USD.  Gold crossed the $1000 level for the first time this week.