How are energy investors positioned?
TXNM Energy Inc. (NYSE:TXNM) and its subsidiary Texas-New Mexico Power Company announced that on Tuesday they repaid in full and terminated a $1.505 billion 364-day delayed-draw term loan credit facility. The agreement, which involved multiple lenders and Wells Fargo (NYSE:WFC) Bank, National Association as administrative agent, was ended in accordance with its terms. The utility company, currently valued at $5.29 billion and trading near its 52-week high of $57.42, maintains a total debt position of $6.14 billion according to InvestingPro data.
The credit facility was originally established to provide financing flexibility related to merger activities for Texas-New Mexico Power Company. With the full repayment, the obligations under the loan have been discharged and the agreement is no longer in effect.
This information is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, TXNM Energy has announced a significant development as it enters into an agreement to be acquired by Blackstone (NYSE:BX) Infrastructure for $11.5 billion. This acquisition includes a purchase price of $61.25 per share, offering a 23% premium over the company’s previous average stock price. The transaction is expected to provide TXNM Energy with substantial long-term capital to support its clean energy initiatives in New Mexico and meet growing demand in Texas. Concurrently, TXNM Energy has modified its credit agreements with Wells Fargo Bank to accommodate the merger, ensuring no defaults are triggered by the change of control. These amendments include changes to a $300 million revolving credit agreement and a $500 million term loan agreement. Additionally, Mizuho (NYSE:MFG) Securities has downgraded TXNM Energy’s stock rating from Outperform to Neutral, while raising the price target to $61.25. This adjustment follows the acquisition announcement, which also includes Blackstone’s strategic move to purchase $400 million worth of TXNM shares through a private placement. These developments highlight significant changes in TXNM Energy’s financial and strategic landscape.
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