Thornburg Mortgage Says Shareholders Approve Proposals To Increase Authorized Stock

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Residential mortgage lending company Thornburg Mortgage, Inc. (TMA) said Thursday its shareholders approved amendments to increase the number of authorized shares of capital stock from 500 million to 4 billion. The increase in the number of authorized shares is anticipated to become effective on June 13, 2008.

Shareholders also approved proposals to modify the terms of each of the company's existing series of preferred stock to remove restrictive covenants that currently prohibit the company from purchasing preferred stock, make the dividend payments on the preferred stock non-cumulative and eliminate all accrued but unpaid dividends, and eliminate substantially all voting rights of the preferred stockholders.

Thornburg also announced the election of three Class II directors, David Matlin, Mark Patterson and Francis Mullin, to three-year terms on the company's 10-member board.

The company is also currently seeking an extension of time under the Principal Participation Agreement and other agreements entered into on March 31, 2008 relating to the issuance of Senior Subordinated Secured Notes due 2015, participation interests and warrants, to extend the deadline by which the company is required to complete the tender offer and consent solicitation from June 30, 2008 to September 30, 2008.

Following the completion of the tender offer, the company would save about $69 million per year in interest payments because the interest rate on its senior subordinated notes due 2015 will be lowered to 12% from 18%.

Shares of Thornburg Mortgage closed Thursday's regular trading session at $0.75, up 3 cents or 4.17%.

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