PNM Resources unit offers new notes in exchange for 9½% bonds due 2019

By Susanna Moon

Chicago, March 7 - PNM Resources, Inc.'s wholly owned subsidiary Texas-New Mexico Power Co. began an exchange offer for its $265.5 million principal amount outstanding 9½% first mortgage bonds due 2019, series A, according to an 8-K filing with the Securities and Exchange Commission.

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

For holders who tender their bonds for exchange by 5 p.m. ET on March 19, the early deadline, the company will issue $1,000 principal amount of new bonds and pay $140 in cash.

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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