To borrow that money, Thornburg is offering convertible bonds paying 12 percent annual interest. Add in some extra warrants, and buyers of the bonds will be able to get stock for less than 72 cents a share. If they convert, they will own 86 percent of the company, while the bankers will have an additional 3 percent — for which they will pay 1 cent a share. Existing shareholders will have an 11 percent stake.
If, that is, the bonds sell. On Thursday night, the bond offering was delayed until Monday, a sign that the underwriters may be having trouble rounding up buyers.
