Business & Finance
Business and Finance
Business and Finance 
Thu, February 5, 2009
PNM Resources Announces Expiration and Final Results of Tender Offer for Portion of Its 9.25% Senior Notes
ALBUQUERQUE, N.M.--([ BUSINESS WIRE ])--PNM Resources (NYSE: PNM) today announced the expiration and final results of its modified "Dutch Auction" tender offer (the "Tender Offer") for a portion of its outstanding 9.25% Senior Notes, Series A, due 2015 (the "Notes"). The terms and conditions of the Tender Offer are set forth in the offer to purchase dated Jan. 5, 2009 (the "Offer to Purchase"), as previously amended, and the accompanying letter of transmittal (the "Letter of Transmittal"). The Tender Offer expired today at 9 a.m., New York City time.
Based on the final count provided by the depositary for the Tender Offer, $157,464,000 in aggregate principal amount of the Notes were validly tendered and not withdrawn in connection with the Tender Offer. PNM Resources accepted for purchase $157,000,000 in aggregate principal amount of the Notes, which is an amount equal to the Tender Cap (as defined in the Offer to Purchase) plus 2% of the Notes subject to the Tender Offer. Because the Tender Offer was oversubscribed, PNM Resources accepted Notes tendered on a pro rata basis as provided in the Offer to Purchase with a proration factor of 99.497% for all holders that tendered at the Clearing Price (as defined in the Offer to Purchase).
Holders whose Notes have been accepted for purchase (all of which were tendered before the "Early Participation Date" of 9 a.m., New York City time, on Feb. 3, 2009) will receive $930 per $1,000 principal amount of the Notes that PNM Resources has accepted for purchase, which includes the Early Tender Premium of $30 per $1,000 principal amount. Holders of such Notes will also be paid any accrued and unpaid interest on such Notes calculated up to, but excluding, the date of payment (the "Payment Date"). The Payment Date for the Tender Offer is expected to be Feb. 5, 2009.
All Notes purchased in the Tender Offer will be retired. All Notes tendered but not purchased, including Notes not purchased because of proration, will be returned promptly to the holders of such Notes at the expense of PNM Resources and will remain outstanding.
Citi, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wedbush Morgan Securities Inc. were the dealer managers for the Tender Offer. Global Bondholder Services Corporation ("GBSC") was the depositary and information agent. Questions regarding the Tender Offer may be directed to Citi at 800-558-3745, Merrill Lynch, Pierce, Fenner & Smith Incorporated at 888-654-8637, or Wedbush Morgan Securities Inc. at 213-688-8091. Requests for documents should be directed to GBSC at 866-873-7700 or 212-430-3774 (for banks and brokers).
This press release is for informational purposes only and does not constitute an offer to purchase or a solicitation of any offer to sell the Notes or any other securities. The Tender Offer is being made solely by the Offer to Purchase and the Letter of Transmittal.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2008 consolidated operating revenues from continuing and discontinued operations of $2.4 billion. Through its utility and energy subsidiaries, PNM Resources has more than 2,700 megawatts of generation resources and serves electricity to more than 859,000 homes and businesses in New Mexico and Texas. The company also has a 50-percent ownership of EnergyCo, which owns approximately 920 megawatts of generation. For more information, visit the company's Web site at [ www.PNMResources.com ].