UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITES EXCHANGE ACT OF 1934
Date of Report (Date of earliest events reported) April 10, 2003
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(April 9, 2003)
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Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
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333-32170 PNM Resources, Inc. 85-0468296
(A New Mexico Corporation)
Alvarado Square
Albuquerque, New Mexico 87158
(505) 241-2700
1-6986 Public Service Company of New Mexico 85-0019030
(A New Mexico Corporation)
Alvarado Square
Albuquerque, New Mexico 87158
(505) 241-2700
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(Former name, former address and former fiscal year,
if changed since last report)
Item 5. Other Events
The following is a press release issued by the Company on April 9, 2003.
PNM Reduces Long-Term Debt, Adds Liquidity Facility
ALBUQUERQUE, N.M., April 9, 2003 - PNM Resources (NYSE:PNM) utility subsidiary
PNM has completed two financial transactions designed to reduce high-cost debt
and to expand the utility's available credit facilities.
In the first transaction, PNM eliminated $45 million of off-balance sheet lease
obligations financing the EIP transmission line. The lease obligations included
$38 million in long-term bonds paying a 10.25 percent interest rate. Acquiring
majority ownership of the EIP line and retiring the bonds is expected to produce
an annual net savings of approximately $1.5 million, or $0.04 per share.
In a second, unrelated transaction, PNM completed arrangements for a three-year,
$90 million liquidity facility secured by the utility's outstanding accounts
receivable. The accounts receivable securitization "builds a mid-term source of
inexpensive liquidity for PNM," said PNM Resources Senior Vice President and
Chief Financial Officer John Loyack. PNM will use the new liquidity facility for
general corporate purposes.
The 345-kilovolt EIP line runs 216 miles from near Albuquerque to the Texas-New
Mexico border, connecting the PNM system with the Texas electrical grid.
PNM Resources is an energy holding company based in Albuquerque, New Mexico.
PNM, the principal subsidiary of PNM Resources, provides natural gas service to
441,000 gas customers and electric utility service to 378,000 customers in New
Mexico. The company also sells power on the wholesale market in the Western U.S.
PNM Resources stock is traded primarily on the NYSE under the symbol PNM.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this filing that relate to future events are made pursuant to
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based upon current expectations and the company assumes no
obligation to update this information. Because actual results may differ
materially from expectations, the company cautions readers not to place undue
reliance on these statements. Future financial results will be affected by a
number of factors, including interest rates, weather, fuel costs, changes in
supply and demand in the market for electric power, wholesale power prices,
market liquidity, the competitive environment in the electric and natural gas
industries, the performance of generating units and transmission system, state
and federal regulatory and legislative decisions and actions, and the
performance of state, regional and national economies. For a detailed discussion
of the important factors affecting PNM Resources, please see "Management's
Discussion and Analysis of Financial Condition and Results of Operations" in the
Company's Form 10-K for the year ended December 31, 2002 and Form 8-K filings
with the Securities and Exchange Commission.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PNM RESOURCES, INC.
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(Registrant)
Date: April 10, 2003 /s/ Robin A. Lumney
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Robin A. Lumney
Vice President, Controller
and Chief Accounting Officer
(Officer duly authorized to sign this report)
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