PNM Resources completes tender for up to $50 million of 9¼% notes

By Jennifer Chiou

New York, Nov. 22 - PNM Resources, Inc. announced the close of its oversubscribed tender offer for up to $50 million of its $192.6 million of 9¼% senior notes, series A, due 2015.

The offer expired at midnight ET on Nov. 21.

PNM accepted for purchase $50 million of the notes at a proration factor of 39.67%.

The company was offering $1,170 per $1,000 principal amount of notes. This included an early tender payment of $30 for each note tendered by 5 p.m. ET on Nov. 4, the early tender date.

Holders also received accrued interest up to but excluding the Tuesday settlement date.

According to a news release, this completes the last step of PNM's current plan to recapitalize its business through the repurchase of debt and equity.

The company funded the offer with proceeds from its sale of First Choice Power to Direct Energy. The tender offer was conditioned on the completion of the sale but was not conditioned on the tender of a minimum principal amount of the notes.

The dealer manager was Citigroup Global Markets Inc. (800 558-3745). The depositary and information agent was Global Bondholder Services Corp. (866 470-3700 or 212 430-3774).

PNM Resources is an energy holding company based in Albuquerque.

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