Desperate Thornburg Issues $1.35B In Debt Notes

Law360, New York (March 25, 2008, 12:00 AM EDT) -- In hopes of avoiding bankruptcy, Thornburg Mortgage Inc. has initiated a private placement of up to $1.35 billion in debt to raise necessary capital and has also amended its bylaws to permit a single investor to acquire up to 30% of company stock.

The Santa Fe-based lender announced the issue Tuesday, saying the placement would involve senior subordinated secured notes bearing 18% interest — to be lowered to 12% after Thornburg achieves a few unspecified conditions — and due in 2015.

Additionally, Thornburg said, purchasers of...
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