TXNM Energy Inc.
07/21/2026 | Press release | Distributed by Public on 07/21/2026 14:21
Material Agreement, Financial Obligation (Form 8-K)
Item 1.01 Entry into a Material Definitive Agreement.
PNM Term Loan
On July 21, 2026, Public Service Company of New Mexico ("PNM"), a wholly-owned subsidiary of TXNM Energy, Inc., entered into a $195.0 million term loan agreement (the "Term Loan"), among PNM, the lenders party thereto and Canadian Imperial Bank of Commerce, New York Branch, as administrative agent (the "Administrative Agent"). The Term Loan is effective as of July 21, 2026, and must be repaid on or before January 21, 2028 (the "Maturity Date"). PNM expects to use the proceeds of the Term Loan to refinance the balance outstanding under its 2025 term loan agreement with the Administrative Agent and the lenders party thereto that matures on July 21, 2026.
PNM must pay interest on its borrowings under the Term Loan from time to time following funding and must repay all amounts on or before the Maturity Date.
The Term Loan includes customary covenants, including a covenant that requires the maintenance of a consolidated debt-to-consolidated capitalization ratio of less than or equal to 0.65 to 1.00 as of the last day of any fiscal quarter. The Term Loan also includes customary events of default, a cross default provision and a change of control provision. If an event of default occurs, the lenders may declare the obligations outstanding under the Term Loan to be due and payable. Such acceleration will occur automatically in the event of an insolvency or bankruptcy default.
The above description of the Term Loan is not complete and is qualified in its entirety by reference to the Term Loan, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
The Administrative Agent performs normal banking (including as a lender under other facilities) and investment banking and advisory services from time to time for PNM and its affiliates, for which such party receives customary fees and expenses.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information required by this item is included in Item 1.01 and incorporated herein by reference.
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