Thornburg Mortgage amends exchange offer

Preferred stock holders will receive 3 common shares for each preferred share tendered, after giving effect to the 1-for-10 reverse stock split effective on Sept. 26. No cash or other consideration will be delivered to those tendering shares.

Under the previous exchange offer, preferred stock holders were to receive $5 in cash and 3.5 common shares for each preferred share tendered.

The company is also extending the expiration of the exchange offer to Oct. 31, from Sept. 30.

The exchange offer is being completed as part of a recapitalization deal Thornburg announced at the end of March to raise $1.35 billion in new capital through an investment by MatlinPatterson.

As of Tuesday, holders of preferred stock had tendered about 93.6 percent of the Series C preferred stock, 94.6 percent of the Series D preferred stock, 94.9 percent of the Series E preferred stock, and 98.3 percent of the Series F preferred stock.

The company has also extended the deadline by which it must complete a successful exchange offer to Dec. 31.

Thornburg shares jumped $1.44, or 82 percent, to $3.19 in afternoon trading. Shares have traded between 17 cents and $14.05 in the past 12 months.