PNM Resources unit enters into $75 million secured revolver due 2018

By Marisa Wong

Madison, Wis., Sept. 18 - PNM Resources, Inc.'s wholly owned subsidiary, Texas-New Mexico Power Co., entered into a $75 million secured second amended and restated credit agreement with KeyBank NA as administrative agent, lead arranger and bookrunner, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement, completed on Wednesday, amends and restates Texas-New Mexico Power's $75 million secured amended and restated credit agreement dated Dec. 16, 2010 with JPMorgan Chase Bank, NA as administrative agent.

The restated facility matures on Sept. 18, 2018.

Interest is equal to Libor plus 100 basis points to 200 bps. The applicable spread is based on the subsidiary's debt rating. The initial interest rate is Libor plus 112.5 bps.

In addition, the company must pay a commitment fee of 10 bps to 35 bps, also based on the company's rating. The initial commitment fee is 12.5 bps.

Borrowings are secured by $75 million principal amount of Texas-New Mexico Power's series 2009C first mortgage bonds.

PNM Resources is an energy holding company based in Albuquerque. The subsidiary is based in Lewisville, Texas.

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