PNM Resources Closes Offering of $500 Million 5.75% Junior Subordinated Convertible Notes due 2054

Core Viewpoint - PNM Resources has successfully closed an offering of $500 million in 5.75% junior subordinated convertible notes due in 2054, with an option for initial purchasers to buy an additional $50 million for overallotments [1] Group 1: Offering Details - The convertible notes were sold in a private offering to qualified institutional buyers under Rule 144A of the Securities Act [1] - The notes are unsecured obligations and rank junior to existing and future senior indebtedness of PNM Resources [8] - Interest on the convertible notes will be paid semi-annually at a rate of 5.75% per annum, with the option for the company to defer interest payments for up to 20 consecutive semi-annual periods [2][8] Group 2: Conversion Rights - Holders can convert their notes only upon certain events before December 1, 2053, and at any time thereafter until two business days before maturity [3] - Upon conversion, PNM Resources will either issue a new series of non-convertible junior subordinated notes or pay cash, along with delivering shares of common stock for any excess conversion obligation [3][10] Group 3: Repurchase and Redemption Conditions - In the event of a fundamental change, holders may require PNM Resources to repurchase their notes at 100% of the principal amount plus accrued interest [4] - The company may not redeem the notes before June 6, 2029, except under specific tax or rating agency events, and can redeem them at 100% of the principal amount plus accrued interest under certain conditions [9] Group 4: Use of Proceeds - The net proceeds from the offering will be used to repay a portion of PNM Resources' outstanding term loans [11]