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TXNM Energy Inc. (NYSE:TXNM), a utility company with a market capitalization of $5.28 billion and impressive one-year return of 58%, and Texas-New Mexico Power Company (TNMP) have entered into amendments to their respective credit agreements, as disclosed in a recent SEC filing. The amendments, effective May 23, 2025, are in connection with TXNM’s merger plans as outlined in the Agreement and Plan of Merger dated May 18, 2025. According to InvestingPro data, TXNM is currently trading near its 52-week high of $57.29.
TXNM Energy, a New Mexico corporation, amended its $300 million revolving credit agreement and $500 million term loan agreement with Wells Fargo (NYSE:WFC) Bank, National Association. The changes redefine the term "Change of Control" to exclude the merger from triggering a default and waive any default arising from the merger agreement. InvestingPro analysis indicates that TXNM operates with a significant debt burden, with total debt of $6.14 billion and a current ratio of 0.29, suggesting tight liquidity management is crucial.
Similarly, TNMP, a Texas corporation, amended its $200 million revolving credit agreement. This amendment also redefines "Change of Control" to prevent the merger from causing a default. Furthermore, TNMP’s $1.505 billion outstanding First Mortgage Bonds will not face a "Bond Repurchase Event" due to these credit agreement amendments.
In addition, TXNM’s $910 million Merger Backstop Revolving Facility with Wells Fargo Bank was terminated as the necessary waivers and amendments made a Prepayment Event occur, as per the terms set forth in the agreement.
The SEC filing also reports that Ms. Elisabeth A. Eden, Senior Vice President, Finance, has announced her retirement effective September 2025, following her initial announcement in 2024.
The full details of these amendments are referenced in the exhibits attached to the SEC filing, which provide more comprehensive information about the terms and conditions of the agreements. The information in this article is based on the statements made in the SEC filing by TXNM Energy Inc. and Texas-New Mexico Power Company. Despite current financial challenges, TXNM has maintained dividend payments for 30 consecutive years, demonstrating long-term stability. For deeper insights into TXNM’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, TXNM Energy has announced an acquisition agreement with Blackstone (NYSE:BX) Infrastructure valued at $11.5 billion, set to close in the second half of 2026 pending shareholder and regulatory approvals. The deal includes a purchase price of $61.25 per share, representing a 23% premium over the company’s average stock price before acquisition rumors emerged. Blackstone Infrastructure plans to invest $400 million through the purchase of newly issued TXNM shares to support the company’s growth plans. Mizuho (NYSE:MFG) Securities downgraded TXNM Energy’s stock rating from Outperform to Neutral but raised the price target to $61.25, aligning with the acquisition price. Citi also adjusted its price target to $55, reflecting recent regulatory developments. Leadership changes are expected, with Don Tarry set to become CEO and President by July 2025, while current Chair and CEO Pat Collawn will step down following the transaction’s completion. TXNM Energy has confirmed its 2025 earnings per share guidance of $2.74 to $2.84 and continues to focus on its $7.8 billion capital expenditure plan. These developments highlight significant strategic shifts for TXNM Energy as it transitions under Blackstone’s ownership.
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