Texas-New Mexico Power extends early date in swap offer for 9½% bonds

By Susanna Moon

Chicago, March 20 - PNM Resources, Inc. said its wholly owned subsidiary Texas-New Mexico Power Co. extended the early deadline in the exchange offer for its $265.5 million principal amount outstanding 9½% first mortgage bonds due 2019, series A.

In exchange, the company is offering a new series of 6.95% first mortgage bonds due 2043 and cash.

The early participation deadline is now 5 p.m. ET on April 2, pushed out from 5 p.m. ET on March 19, according to a company press release.

As of the original early date, holders had tendered about $92 million of the notes.

Tendered notes may no longer be withdrawn.

As noted, the company will issue $1,000 principal amount of new bonds and pay $140 in cash to holders who tender their bonds for exchange by the early deadline.

The total payment includes an early exchange premium of $30 in cash for each $1,000 principal amount.

Those who tender after the early tender date will receive $1,000 of new bonds plus $110 in cash per $1,000 principal amount.

The exchange offer will end at 5 p.m. ET on April 2. The offer began on March 6.

The exchange offer is conditioned on issuance of the new bonds "and the absence of certain adverse legal and market developments," according to a company press release.

PNM Resources is an energy holding company based in Albuquerque.

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