Texas-New Mexico Power plans redemption of all 6 1/8% notes

By Jennifer Chiou

New York, March 11 - Texas-New Mexico Power Co. intends to use the proceeds of a $150 million term loan credit agreement to redeem its remaining $148.9 million of 6 1/8% senior notes due June 1, 2008, according to an 8-K filing with the Securities and Exchange Commission.

On Feb. 26, the electricity generator's board authorized the entrance into a proposed $150 million short-term bank loan agreement with two banks, JPMorgan Chase Bank, NA as administrative agent and JPMorgan and Union bank of California, NA as lenders.

The company plans to redeem the notes prior to June 1.

Texas-New Mexico Power said it plans to ultimately replace the $150 million loan by issuing long-term debt in the form of additional senior unsecured notes.

Texas-New Mexico, based in Fort Worth, Texas, is a wholly owned subsidiary of PNM Resources, Inc.

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