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 — a vertically integrated electric utility with more
than 500,000 customers in New Mexico and generation capacity of 2,530
megawatts; and
-
TNMP — a Texas distribution and transmission electric
utility with 230,000 end-users in West Texas, Fort Worth, suburban
Dallas and the Gulf Coast Region south of Houston.
Background:
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 www.PNMResources.com.
PNM Resources
Analysts
Lisa Eden
(505)
241-2691
or
Media
Frederick Bermudez
(505)
241-4831
Source: PNM Resources
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