PNM Resources Announces Expiration and Final Results of Tender Offer for Portion of 9.25% Senior Notes

Published on Tuesday, 22 November 2011 09:12 Written by TradersHuddle Staff

ALBUQUERQUE, N.M.-( Business Wire )-

PNM Resources (NYSE: PNM) today announced the expiration and final results of its cash tender offer for a portion of its outstanding 9.25% Senior Notes, Series A, due 2015. This completes the last step by PNM Resources in its current plans to recapitalize its business through the repurchase of debt and equity utilizing proceeds from the Nov. 1 sale of First Choice Power to Direct Energy. Any remaining proceeds from the sale will be used for general corporate purposes.

The terms and conditions of the tender offer are set forth in the offer to purchase dated Oct. 24, 2011, and the accompanying letter of transmittal. The tender offer expired at the end of the day (midnight, Eastern time) on Nov. 21, 2011. PNM Resources accepted for purchase $50.0 million in aggregate principal amount of the notes. Because the tender offer was oversubscribed, PNM Resources accepted notes tendered on a pro rata basis as provided in the offer to purchase with a proration factor of 39.67 percent for all holders who tendered.

Holders of purchased notes tendered before the early tender date of Nov. 4, 2011, will receive $1,170 per $1,000 principal amount of the notes. Holders of purchased notes tendered after the early tender date will receive $1,140 per $1,000 principal amount of the notes. Holders of purchased notes also will be paid any accrued and unpaid interest on the notes, calculated up to but excluding the date of payment, or settlement date, which is today.

All notes purchased in the tender offer will be retired. Notes tendered but not purchased will be returned promptly to the holders at the expense of PNM Resources and will remain outstanding.

Citigroup Global Markets Inc. was the sole dealer manager for the tender offer. Global Bondholder Services Corporation was the depositary and information agent.

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2010 consolidated operating revenues of $1.7 billion. Through its utility subsidiaries, PNM Resources has approximately 2,530 megawatts of generation capacity and serves electricity to more than 730,000 homes and businesses in New Mexico and Texas. For more information, visit the company's Web site at www.PNMResources.com.

PNM ResourcesAnalystsLisa Eden, 505-241-2691MediaFrederick Bermudez, 505-241-4831