UPDATE 2-Thornburg Mortgage rescue on hold, tender revised

(Adds company comment, updates shares)

By Jonathan Stempel

NEW YORK Oct 1 (Reuters) - Thornburg Mortgage Inc TMA.N, a "jumbo" home loan specialist trying to avoid collapse, revised terms of a bailout package on Wednesday after failing to resolve surprise margin calls from its own lenders.

The company is tendering for its preferred stock to save a $1.35 billion rescue it lined up in March from MatlinPatterson Global Advisors LLC and other investors after other margin calls. Chief Executive Larry Goldstone said in August that Thornburg might fail if the rescue fell apart.

Thornburg said its tender offer was derailed after its own lenders made unexpected demands for collateral and withheld funds. On Tuesday, the Santa Fe, New Mexico-based company cut 29 jobs, or 16 percent of its already reduced work force.

A Thornburg spokeswoman, Suzanne O'Leary Lopez, declined to elaborate on the developments. MatlinPatterson did not immediately return a call seeking comment.

Thornburg is now offering to exchange three common shares, taking into account a 1-for-10 reverse split that took effect on Friday, for each preferred share, valued at $25.

The previous offer called for Thornburg to swap $5 in cash plus 3.5 common shares on a pre-split basis for each preferred share. Holders of most preferred shares had agreed to these terms. Thornburg plans to ask the New York Stock Exchange for a "financial viability" exemption to conduct the new offer.

Thornburg said its tender offer will now expire on Oct. 31. The offer has been extended eight times. The company said a majority of investors in the rescue gave it until Dec. 31 to complete the offer.

Thornburg specialized in mortgages above $417,000 to borrowers with good credit, but stopped lending this year as it ran short of capital. It ended June with $27.2 billion of adjustable-rate mortgage assets on its books.

Well over 100 mortgage lenders have stopped lending, been sold or gone bankrupt since the start of 2007.

Thornburg said $188.6 million held in escrow for the original tender offer has been released. It also expects to issue warrants for 30 million common shares on a pre-split basis to some senior subordinated noteholders.

Thornburg shares rose 35 cents to $2.10 in morning trading, while its Class C preferred shares soared $1.45 to $2.45, NYSE data show. The 52-week high for the common shares is $140.50, set Feb. 7, taking into account the reverse stock split. (Editing by John Wallace)