Thornburg Mortgage, Inc. (NYSE:TMA) said on Tuesday the company had approved a deadline extension for the completion of its preferred stock tender offer to Sept. 30, 2008. According to the terms of the offer, for each share of the residential mortgage lender's Series C, D, E and F Preferred Stock that is validly tendered and accepted upon expiration of the offer, the holder will receive $5 cash and 3.5 shares of common stock, the company said. Successful completion of the offer will result in the annual interest rate for the company’s Senior Subordinated Secure Notes due 2015 to drop from 18% to 12%. This should amount to a savings of $69 million per year in interest payments, the Santa Fe, N.M.-based company said.

Before the open Tuesday, shares of Thornburg Mortgage rose 8.9% to $0.22 apiece.

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