TMST Inc. (fka THMRQ)

[goosemeister]

Thornburg Mortgage Announces Further Extension of Exchange Offer and Consent Solicitation

Tuesday September 2, 6:17 pm ET

Company intends to complete its Exchange Offer and Consent Solicitation on September 9, 2008

SANTA FE, N.M.--(BUSINESS WIRE)--Thornburg Mortgage, Inc. (NYSE: TMA - News), announced today that it is extending the expiration of its exchange offer and consent solicitation (the “Exchange Offer”) for all outstanding shares of its 8.00% Series C Cumulative Redeemable Preferred Stock (“Series C Preferred Stock”), Series D Adjusting Rate Cumulative Redeemable Preferred Stock (“Series D Preferred Stock”), 7.50% Series E Cumulative Convertible Redeemable Preferred Stock (“Series E Preferred Stock”) and 10% Series F Cumulative Convertible Redeemable Preferred Stock (“Series F Preferred Stock” and collectively with the Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock, the “Preferred Stock”) to September 9, 2008, at 12:01 a.m. EDT.

The company and the parties to the Override Agreement continue to negotiate clarifications with respect to the amount, timing, calculation methodology, limits of margin calls and agreed upon uses for the Liquidity Fund. The company continues to negotiate a resolution to these ambiguities with the parties to the Override Agreement and currently anticipates that a successful clarification of the Agreement would allow the Company to complete the Exchange Offer by 12:01 a.m. EDT, on September 9, 2008, unless further extended or terminated by the company.

On September 2, 2008, holders of Preferred Stock had tendered approximately (i) 89.9% (5,866,768 shares) of the Series C Preferred Stock; (ii) 88.8% (3,553,548 shares) of the Series D Preferred Stock; (iii) 94.0% (2,973,076 shares) of the Series E Preferred Stock and (iv) 94.5% (28,649,913 shares) of the Series F Preferred Stock.

Holders of the Preferred Stock who participate in the Exchange Offer will receive $5.00 in cash and 3.5 shares of the company’s common stock for each share of preferred stock validly tendered. Holders who have previously tendered their shares of Preferred Stock continue to have the right to revoke such tenders at any time prior to the new expiration date by complying with the revocation procedures set forth in the Offering Circular relating to the Exchange Offer.

The Exchange Offer and Consent Solicitation is being made to holders of Preferred Stock in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended, afforded by Section 3(a)(9) of the Securities Act. Investor inquiries about the Exchange Offer should be directed to the company at 866-222-2093 (toll free). Holders of the Preferred Stock are urged to read the Offering Circular which has been filed with the SEC and contains important information regarding the Exchange Offer. Requests for copies of the Offering Circular and related documents may be directed to Georgeson Inc., the information agent for the Exchange Offer, at 866-399-8748 (toll free). The Offering Circular and other information regarding the Exchange Offer may also be obtained through the SEC's Web site at www.sec.gov and the company’s Web site at www.thornburgmortgagetender.com.

http://biz.yahoo.com/bw/080902/20080902006535.html?.v=1