PNM Resources accepts $157 million of notes in oversubscribed tender for some 9¼% notes

By Jennifer Chiou

New York, Feb. 5 - PNM Resources, Inc. said it accepted for purchase $157 million of the $157.46 million of tenders for its 9¼% series A senior notes due 2015.

The accepted amount is equal to the $150 million tender cap plus 2% of notes subject to the tender offer. The tendered notes were accepted with a proration factor of 99.497%.

The offer ended at 9 a.m. ET on Feb. 5 from Feb. 3 while the early participation date was also 9 a.m. ET on Feb. 3.

The company was offering to purchase up to $150 million of the $350 million of notes outstanding.

Pricing was set using a modified Dutch auction, and holders could specify a price from $830 to $930 per $1,000 principal amount in increments of $2.50.

Bids were accepted from lowest to highest price until PNM reached $150 million.

Holders who tendered after the early participation date will receive $30.00 less for each $1,000 principal amount.

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

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

All notes purchased in the tender offer will be retired.

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

PNM Resources is an energy holding company based in Albuquerque.

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