Lender Raises $100M to Fund ARMs, Jumbo Mortgages

Thornburg Mortgage says it has raised $100 million through a preferred equity offering, which it only announced two days ago.

The national home mortgage company will use the money it raied primarily to finance the acquisition or origination of additional adjustable-rate mortgage assets and for working capital.

According to the Albuquerque Business Journal, Thornburg Mortgage launched a two-million share public offering of Series D preferred stock at $25 per share on Tuesday. The offering carries a fixed dividend for the initial five-year period and will float quarterly thereafter.

The aggregate net proceeds to the company are estimated to be about $96.2 million, a sum that takes into account the costs of issuance.

The mortgage lender has also granted the underwriters an option to purchase up to 600,000 additional shares from the company for the purpose of covering over-allotments, if any.

Thornburg is based in Santa Fe, N.M., and is a single family home mortgage lender focusing primarily on the jumbo mortgage sector of the adjustable rate mortgage market.

Fueled largely by its success with adjustable-rate mortgages, it priced the underwritten public offering of four million shares of Series D adjusting rate preferred stock at $25 per share.