PNM Resources tenders for $150 million 9¼% notes

New York, Jan. 5 - PNM Resources said it has begun a tender offer for $150 million of its 9¼% series A senior notes due 2015. There are currently $350 million of the notes outstanding.

Pricing in the tender will be set using a modified Dutch auction and holders can specify a price from $830 to $930 per $1,000 principal amount in increments of $2.50. Those who do not give a price will receive the clearing price.

Bids will be accepted from lowest to highest price until PNM reaches the $150 million size of the tender offer. All holders whose notes are purchased will receive the price necessary to reach that $150 million.

The offer is contingent on various conditions including the closing of the sale of PNM's utility gas operations. The $620 million transaction is scheduled to close on Jan. 30.

Holders who tender by the early participation date will receive the full payment. Those who tender after will receive $30 per $1,000 less.

PNM Resources will also pay accrued interest up to but excluding the date of payment.

Expiration for the tender will be 9 a.m. ET on Feb. 3. The early participation date is 5 p.m. ET on Jan. 16.

Citi (800 558-3745), Merrill Lynch, Pierce, Fenner & Smith Inc. (888 654-8637) and Wedbush Morgan Securities Inc. (213 688-8091) are the dealer managers. Global Bondholder Services Corp. is the depositary and information agent (866 873-7700, banks and brokers call 212 430-3774).

PNM Resources is an Albuquerque, N.M., energy holding company.

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