By Marisa Wong
Los Angeles, April 28 – PNM Resources, Inc. subsidiaries Public Service Co. of New Mexico and Texas-New Mexico Power Co. entered into note purchase agreements with institutional investors on April 28 to issue senior notes and first mortgage bonds through private placement transactions, according to an 8-K filing with the Securities and Exchange Commission.
Public Service Co. of New Mexico sold $200 million aggregate principal amount of senior notes, comprised of $150 million of 5.51% senior notes, series A, due April 28, 2035 and $50 million of 5.92% senior notes, series B, due April 2053. Both series were issued on April 28.
In the event of a change of control, the issuer will be required to offer to prepay the notes at par. The notes are also callable in whole or in part at a make-whole price.
The note purchase agreement for the senior notes includes a covenant, among others, that requires the issuer to maintain a debt-to-capitalization ratio of less than or equal to 65%.
Public Service Co. of New Mexico will use the proceeds for repayment of debt, funding of capital expenditures and general corporate purposes.
Texas-New Mexico Power agreed to issue $185 million of first mortgage bonds, consisting of $130 million of 5.01% first mortgage bonds due April 28, 2033, series 2023A, issued on April 28 and $55 million of 5.47% first mortgage bonds, due July 28, 2053, series 2023B, that will be issued on or before July 28.
In the event of a change of control (other than in connection with the pending merger between PNM Resources and Avangrid), the issuer will be required to offer to prepay the bonds at par. The bonds are also callable in whole or in part with payment of a make-whole premium.
The terms of the first mortgage bonds include customary covenants, including a covenant that requires the maintenance of a debt-to-capitalization ratio of less than or equal to 65%.
Texas-New Mexico Power will use proceeds for the repayment of existing debt and other general corporate purposes, including projected capital expenditures.
The energy holding company is based in Albuquerque.
Senior notes
| Issuer: | Public Service Co. of New Mexico
|
| Amount: | $200 million
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| Issue: | Senior notes
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| Call option: | Make-whole call in whole or in part
|
| Change-of-control put: | At par
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| Issue date: | April 28
|
| Distribution: | Private placement
|
|
|
| Series A
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| Amount: | $150 million
|
| Maturity: | April 28, 2035
|
| Coupon: | 5.51%
|
|
|
| Series B
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| Amount: | $50 million
|
| Maturity: | April 2053
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| Coupon: | 5.92%
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|
|
|
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| First mortgage bonds
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| Issuer: | Texas-New Mexico Power Co.
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| Amount: | $185 million
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| Issue: | First mortgage bonds
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| Call option: | Make-whole call in whole or in part
|
| Change-of-control put: | At par
|
| Distribution: | Private placement
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|
|
| Series 2023A
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| Amount: | $130 million
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| Maturity: | April 28, 2033
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| Coupon: | 5.01%
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| Issue date: | April 28
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|
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| Series 2023B
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| Amount: | $55 million
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| Maturity: | July 28, 2053
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| Coupon: | 5.47%
|
| Issue date: | On or before July 28
|
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