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PNM Resources Completes Sale of First Choice Power

Exit from Texas competitive businesses complete

ALBUQUERQUE, N.M.--(BUSINESS WIRE)-- PNM Resources (NYSE: PNM) today completed the cash sale of its retail electricity provider to Direct Energy for $270 million, plus working capital.

"The sale of First Choice Power completes the exit from our competitive businesses and is a key element in our strategy of maximizing the value of these businesses to our shareholders. The transaction also serves to reduce our exposure to market risks and positions PNM Resources as solely operating regulated electric utilities," said Pat Vincent-Collawn, PNM Resources president and CEO. "As we move forward, we are focused on strengthening our balance sheets, returning to solid investment-grade credit ratings and achieving our utilities' allowed returns."

As previously announced, PNM Resources is using most of the net proceeds of the First Choice Power sale to recapitalize its business by repurchasing debt and equity. Any remaining proceeds from the First Choice Power sale will be used for general corporate purposes.

Use of Proceeds

Equity Repurchases: The PNM Resources Board of Directors has authorized equity repurchases of up to $230 million over the next 12 months, the first of which was accomplished with the repurchase of all of the company's outstanding convertible preferred shares for $73.5 million. These shares were convertible into 4,778,000 shares of PNM Resources common stock. The company is considering various alternatives related to the repurchase of currently outstanding shares of common stock.

Debt Repurchases: The company has also announced a cash tender offer to purchase up to $50.0 million of its outstanding 9.25% Senior Notes, Series A due 2015 subject to, among other things, the completion of the First Choice Power sale, which has now been satisfied.

PNM Resources Subsidiaries

As of today, PNM Resources is a holding company operating two regulated electric utilities:


PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2010 consolidated operating revenues of $1.7 billion. Through its regulated utilities, PNM Resources has approximately 2,530 megawatts of generation capacity and serves electricity to more than 730,000 homes and businesses in New Mexico and Texas. For more information, visit the company's Web site at

PNM Resources
Lisa Eden
(505) 241-2691
Frederick Bermudez
(505) 241-4831

Source: PNM Resources

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