Public Service Co. of New Mexico announces split-rated $350 million offering of 10-year notes

By Andrea Heisinger

Omaha, May 7 - Public Service Co. of New Mexico announced a split-rated $350 million offering of 10-year senior unsecured notes (Baa3/BB+/BBB-) Wednesday, according to a 424B5 filing with the Securities and Exchange Commission.

The timing of the pricing is unknown, a source close to the issue said.

This is part of a $700 million deal also involving a junk-rated, $350 million tranche of seven-year notes (Ba2/BB-) from parent PNM Resources.

The operating company deal, the Public Service tranche, is being run off both the high yield and investment grade syndicate desks, with high grade accounts expected to take part in the deal, an informed source said.

Lehman Brothers and Merrill Lynch & Co. are the active bookrunners. Citigroup, Deutsche Bank Securities, Morgan Stanley, RBC Capital Markets and Wedbush Morgan are the passive bookrunners. Banc of America Securities, J.P. Morgan Securities Inc., Union Bank California and Credit Suisse are co-managers.

Proceeds will be used for general corporate purposes including the repayment of short-term debt.

For the holding company deal, Lehman Brothers and Banc of America Securities LLC are the active bookrunners. Merrill Lynch & Co., Morgan Stanley and Wedbush Morgan are passive bookrunners. Citigroup, Deutsche Bank Securities, RBC Capital Markets, J.P. Morgan Securities Inc. and Union Bank California are co-managers.

Proceeds will be used to pay down outstanding borrowings under an unsecured revolving credit facility.

PNM Resources is concurrently remarketing of its 4.8% senior notes, series A, initially due 2010.

The utility is based in Albuquerque.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.