PNM Resources remarketing $100 million 6 5/8% notes due Nov. 16, 2010

By Paul A. Harris

St. Louis, Nov. 7 - PNM Resources, Inc. launched a remarketing of its 6 5/8% senior notes due Nov. 16, 2010 (Ba2/BB-/BB) on Friday, according to informed sources.

No official price talk was available.

However, PNM Resources' 9¼% senior notes due May 15, 2015, which were issued back in May, were spotted Friday at 82½ bid to yield approximately 13½%, one source said.

The remarketed 6 5/8% notes might reasonably be expected to come at a premium to the 9¼% notes, the source added.

Citigroup is leading the deal, which is being run off the high grade desk. The syndicate also includes Banc of America Securities LLC, Wedbush Morgan Securities Inc., RBC Capital Markets and UBS Investment Bank.

The notes will be noncallable, and will feature a 101 change of control put.

Proceeds will be used to fund the equity units holders' purchase of common stock.

The company may purchase up to $90 million of notes in the remarketing, according to information disclosed in the prospectus.

PNM Resources is the holding company for Public Service Co. of New Mexico.

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