In an odds-defying triumph for the jumbo mortgage giant, Thornburg Mortgage (TMA) announced a $1 billion offering of convertible notes and a one-year standstill agreement with five of its repo counterparties. The move ensures Thornburg's continued survival, though it will be a long road back to the glory days TMA once enjoyed. Nonetheless, it is a testament to the determination and acumen of Thornburg's management to keep the franchise alive. Thornburg will not pay a common stock dividend for the remainder of the year, except for a year-end distribution of 87% of its 2008 taxable income to retain its REIT status.
Read the Thornburg release here.
1 comments:
i think an intersting question is why would the banks go thru all this nonsense w/tma? why not pull the plug as they did w/carlyle? maybe they don't want to recognize the losses on the collateral?
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