PNM Resources unit accepts tenders for $93.2 million 9½% bonds

By Jennifer Chiou

New York, April 2 - PNM Resources, Inc. wholly owned subsidiary Texas-New Mexico Power Co. announced that it accepted total tenders for $93,198,000 in the exchange offer for its $265.5 million of 9½% series A first mortgage bonds due 2019.

In exchange, the company will issue a like amount of new 6.95% first mortgage bonds due 2043 and a cash consideration of $13,047,720, plus accrued interest through April 2.

The early participation deadline was 5 p.m. ET on April 2, previously pushed back from 5 p.m. ET on March 19.

The offer also ended at 5 p.m. ET on April 2. It began on March 6.

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

For each $1,000 of tendered securities, 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 $30.00 in cash for each $1,000 principal amount.

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

PNM Resources is an energy holding company based in Albuquerque.

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