In The Crosshairs: Thornburg Mortgage

Positive confusion: Trading in shares of ultra-jumbo specialist Thornburg Mortgage were briefly halted this morning, after the company put out a press release announcing that it would offer convertible shares but did not provide a price. A second press release later clarified the $25.00 per share price and trading resumed — with the offering providing the lender with a much-needed shot in the arm. Thornburg shares had risen nearly 7.5 percent as of when this post was published. From MarketWatch:

“I think they got caught between two releases announcing finalization of the deal,” said RBC Capital Markets analyst Jason Arnold.

Master of the obvious, that Jason Arnold. Trying to get back to good: While the offering boosts Thornburg’s capital position, the company is making a concerted attempt to get back to something resembling normal operations. Thornburg said it had resumed funding mortgages on Monday. Standing in the way had been a lawsuit, as Thornburg had been sued by Wachovia over unwound derivatives. Both companies reported yesterday that Thornburg had repaid its debt and that the case against it had been dismissed, further clearing the way for the company to push ahead with more normal operations. On watch: In mid-August, Thornburg had delayed payment of its second quarter dividend to September 17th, citing current market conditions. All indications are that the company will make the approximately $83 million distribution to shareholders as expected, but industry insiders say they’re watching closely to see how the dividend payout impacts Thornburg’s operations during the third quarter. The company has been busy building additional liquidity by selling $21 billion in assets, in addition to today’s equity offering.

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