PNM Resources to pay off TNP Enterprises' $110 million term loan in completed acquisition

By Jennifer Chiou

New York, June 6 - PNM Resources announced Monday it will pay down TNP Enterprises' $110 million term loan in conjunction with its completed acquisition of the energy holding company.

PNM, which plans to issue $100 million in debt to add to its completed issuance of $350 million in equity-linked securities completed in March, will use proceeds to pay off the TNP bank debt in addition to retiring securities and funding acquisition-related costs.

Furthermore, Cascade Investment LLC has agreed to invest $100 million in equity-linked securities that PNM will issue in the next 30 days. These proceeds will also be used to retire remaining debt.

"Replacing the more expensive TNP debt and securities with our new financing will result in net savings well in excess of $40 million in annual interest expense," John R. Loyack, PNM senior vice president and chief financial officer, said.

TNP will also retire its outstanding 10¼% senior subordinated notes due 2010 and its 14½ senior preferred stock.

PNM, an energy holding company, is based in Albuquerque, N.M.

Fort Worth, Texas-based TNP has Texas-New Mexico Power and First Choice Power as its principal subsidiaries.

© 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.