PNM Resources moves tender deadline for some 9¼% notes to Feb. 5

By Susanna Moon

Chicago, Feb. 3 - PNM Resources, Inc. said it extended the tender offer for a portion of its outstanding 9¼% series A senior notes due 2015 to 9 a.m. ET on Feb. 5 from Feb. 3.

The early participation date expired at 9 a.m. ET on Feb. 3.

The company is offering to purchase up to $150 million of the $350 million of notes outstanding.

Pricing will be set using a modified Dutch auction, and holders can specify a price from $830 to $930 per $1,000 principal amount in increments of $2.50. Those who do not give a price will receive the clearing price.

Bids will be accepted from lowest to highest price until PNM reaches $150 million. All holders whose notes are purchased will receive the price necessary to reach that $150 million, according to a previous news release.

Holders who tender after the early participation date will receive $30 less for each $1,000 principal amount.

PNM will also pay accrued interest up to but excluding the payment date.

The offer is contingent on various conditions, including the closing of the sale of PNM's utility gas operations. The $620 million transaction was scheduled to close on Jan. 30.

Citi (800 558-3745), Merrill Lynch, Pierce, Fenner & Smith Inc. (888 654-8637) and Wedbush Morgan Securities Inc. (213 688-8091) are the dealer managers. Global Bondholder Services Corp. (866 873-7700, banks and brokers call 212 430-3774) is the depositary and information agent.

PNM Resources is an energy holding company based in Albuquerque.

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