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...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.