PNM Works with New Mexico Banks to Boost Economy - pnmprod
Jan. 8, 2014
PNM Works with New Mexico Banks to Boost Economy
Albuquerque: Public Service Company of New Mexico (PNM), a subsidiary of PNM Resources (NYSE: PNM), today announced it has completed a unique financing agreement designed to increase business with New Mexico banks. The agreement supports economic development in local communities and provides PNM with necessary capital funding to maintain its top quartile reliability and continue to improve its systems.
PNM and local financial institutions collaborated to develop a $50 million credit facility to provide the company with intermediate-term financing for infrastructure development.
"This financing agreement is an extension of PNM's ongoing commitment to buy local and support the New Mexico economy," said Chuck Eldred, PNM Resources' executive vice president and chief financial officer. "The agreement is competitively priced, which benefits our customers, and the banks benefit from being involved in this kind of large-scale financing. Ultimately this means a stronger local economy and more jobs."
PNM required that participating banks have a significant presence in the state and the company's service territory or be headquartered in New Mexico. A total of nine banks, representing a combined 124 branches across New Mexico holding an aggregate of $5.7 billion in customer deposits, are involved in the financing. U.S. Bank and Bank of Albuquerque are serving as joint lead arrangers of the facility.
"U.S. Bank is excited to be a part of this unique, win-win collaboration that benefits New Mexicans and local businesses," said Jed Fanning, executive vice president and New Mexico commercial group manager for U.S. Bank. "It's an excellent example of PNM's focus on finding creative ways to support jobs and economic growth."
"The effort by PNM and the bank group shows that the business community can find solutions to boost New Mexico's economy," said John M. Valentine, senior vice president of Commercial Banking at Bank of Albuquerque. "We are proud to be a part of this innovative arrangement and congratulate PNM on taking this leadership role."
Other participating banks include:
- Bank of the West
- Community Bank (Santa Fe, N.M.)
- First National Bank of Santa Fe
- Four Corners Community Bank (Farmington, N.M.)
- Southwest Capital Bank (Las Vegas, N.M.)
- Washington Federal
- Western Bank (Alamogordo, N.M.)
Over the next five years PNM anticipates spending more than $1 billion for capital improvements throughout the company's service territory. This credit facility will support that significant financial activity.
PNM's large-scale capital financing has primarily involved large national and international banking institutions and traditional capital markets. This new, local partnership allows PNM to further diversify the company's lender base while building strong personal and financial relationships within the community.
CFSD Group LLC served as an advisor to Public Service Company of New Mexico for this financing arrangement.
With headquarters in Albuquerque, PNM is the largest electricity provider in New Mexico, serving 500,000 customers in dozens of communities across the state. PNM is a subsidiary of PNM Resources, an energy holding company also headquartered in Albuquerque. For more information, visit PNM.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release that relate to PNM's expectations, projections and estimates are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates, and PNM assumes no obligation to update this information."