TNP to redeem 10¼% senior subordinated notes, preferred stock in acquisition by PNM

By Jennifer Chiou

New York, June 6 - TNP Enterprises announced Monday it will redeem all its outstanding 10¼% senior subordinated notes due 2010 and its 14½% senior redeemable preferred stock as a result of the company's completed acquisition by PNM Resources.

The redemptions in conjunction with the acquisition, which was announced July 2004, eliminate the need for change of control offers for the senior subordinated notes and preferred stock, the company said.

The series B senior subordinated notes will be repaid in cash at a redemption price of 105.125% plus accrued interest.

The outstanding series C and D senior redeemable preferred stock will also be repaid in cash at a redemption price of 110% plus accumulated dividends.

PNM intends to issue $100 million in debt to add to the issuance of $350 million of equity-linked securities completed in March to fund redemption of the securities, partially pay down TNP debt and to finance the acquisition costs.

TNP, which has headquarters in Fort Worth, Texas, is a holding company with Texas-New Mexico Power and First Choice Power as principal subsidiaries.

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

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