TXNM Energy retires $1.08B in bonds; cuts secured debt sharply

TXNM Energy (NYSE:TXNM) filed a Form 8-K to report the completion of Texas-New Mexico Power Company’s previously announced offer to prepay up to $1.505 billion of outstanding First Mortgage Bonds.

Rhea-AI Filing Summary

TXNM Energy (NYSE:TXNM) filed a Form 8-K to report the completion of Texas-New Mexico Power Company’s previously announced offer to prepay up to $1.505 billion of outstanding First Mortgage Bonds.

The offer expired at 9:00 a.m. (New York time) on 14 June 2025. According to the tender agent’s final count, holders validly tendered $1.0843 billion in aggregate principal amount, all of which were accepted for purchase. Participating bond-holders will receive 100 percent of face value plus accrued and unpaid interest up to, but excluding, the settlement date. The filing reiterates that the current report does not constitute an offer to sell or a solicitation to buy the Bonds in any jurisdiction.

The transaction materially reduces secured debt outstanding at TXNM’s regulated utility subsidiary, potentially lowering future interest expense and strengthening the balance sheet, although it also requires a significant near-term cash outlay. No other financial metrics, risk factors or legal proceedings were disclosed in the filing.

Positive

• Accepted for purchase $1.084 billion in First Mortgage Bonds, significantly reducing secured debt
• Paid par plus accrued interest, avoiding expensive call premiums and lowering future interest burden

Negative

• Requires an immediate $1.084 billion cash outlay, pressuring short-term liquidity
• $420 million of First Mortgage Bonds remain outstanding, limiting full deleveraging benefit

Insights

Debt Markets Analyst

TL;DR – Prepayment removes over $1 billion secured debt, modestly improves leverage.

The acceptance of $1.084 billion of First Mortgage Bonds at par immediately shrinks TNMP’s secured debt stack by roughly 72 percent of the amount originally targeted. Retiring long-dated, fixed-rate bonds ahead of schedule should cut annual interest expense and free collateral, enhancing financial flexibility before the pending merger with BIP. Management avoids a call premium by paying 100 percent of principal, signalling disciplined capital deployment. The move may bolster credit metrics, potentially supporting future rate case positioning and credit-rating outlooks.

Corporate Cash-Flow Analyst

TL;DR – Cash drain offsets leverage benefit; net impact likely neutral.

While leverage falls, the company must fund a $1.084 billion cash outflow, reducing near-term liquidity. The filing does not disclose funding sources—whether internally generated cash, revolver draw, or parent-level support. Approximately $420 million of bonds remain outstanding, limiting full interest-expense relief. Absent detail on post-transaction liquidity or refinancing strategy, the balance-sheet improvement could be muted in the short term.

8-K Event Classification

Item 8.01 — Other Events

1 item

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much principal did TXNM (TXNM) accept for prepayment in the offer?

TXNM accepted $1.0843 billion in aggregate principal amount of First Mortgage Bonds for purchase.

What price will bondholders receive for tendered TXNM First Mortgage Bonds?

Holders will be paid 100% of face value plus accrued and unpaid interest up to, but not including, the payment date.

When did TXNM's bond prepayment offer expire?

The offer expired at 9:00 a.m. (New York time) on 14 June 2025.

Does the 8-K constitute an offer to sell TXNM securities?

No. The filing explicitly states it does not constitute an offer to sell or the solicitation of an offer to buy the Bonds.

How much of the original $1.505 billion bond amount remains outstanding after the tender?

Approximately $420 million of First Mortgage Bonds were not tendered and therefore remain outstanding.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/20/2025 - 04:16 PM Learn about SEC filing dates

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM			8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)			June 20, 2025
			(June 14, 2025)

Name of Registrant, State of Incorporation, Address Of Principal Executive Offices, Telephone Number, Commission File No., IRS Employer Identification No.

TXNM Energy, Inc.

(A New Mexico Corporation)

414 Silver Ave. SW

Albuquerque, New Mexico 87102-3289

Telephone Number - (505) 241-2700

Commission File No. - 001-32462

IRS Employer Identification No. - 85-0468296

Texas-New Mexico Power Company

(A Texas Corporation)

577 N. Garden Ridge Blvd.

Lewisville, Texas 75067

Telephone Number - (972) 420-4189

Commission File No. - 002-97230

IRS Employer Identification No. - 75-0204070

____________________________________________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 40.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Registrant			Title of each class			Trading Symbol(s)			Name of exchange on which registered
TXNM Energy, Inc.			Common Stock, no par value			TXNM			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01    Other Events.

On June 14, 2025, Texas-New Mexico Power Company’s (“TNMP”) previously announced offer to prepay (the “Offer”) for $1,505,000,000 aggregate principal amount of its outstanding First Mortgage Bonds (the “Bonds”) expired. The terms and conditions of the Offer are set forth in the offer to prepay dated May 19, 2025 and the accompanying letter of transmittal. The Offer expired at 9:00AM, New York City time, on June 14, 2025.

Based on the final count provided by the tender agent for the Offer, $1,084,300,000 in aggregate principal amount of the Bonds were validly tendered. TNMP accepted for purchase all validly tendered Bonds. Holders whose Bonds were validly tendered and accepted for purchase will receive 100% of the aggregate principal amount of Bonds prepaid plus accrued and unpaid interest with respect to such Bonds to, but not including, the date of payment, subject to the rights of each registered holder of the Bonds on the relevant record date to receive interest due on the relevant interest payment date.

This Current Report on Form 8‑K shall not constitute an offer to sell or the solicitation of an offer to buy the Bonds, nor shall there be any sales of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Forward-Looking Statements

Statements made in this Form 8-K for TXNM that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally include statements regarding the Offer. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. TXNM does not assume any obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, TXNM cautions readers not to place undue reliance on these statements. TXNM’s business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see TXNM’s Form 10-K and Form 10-Q filings and the information filed on TXNM’s Forms 8-K with the SEC, which factors are specifically incorporated by reference herein and the risks and uncertainties related to the proposed merger with BIP and Offer, including, but not limited to: the expected timing and likelihood of completion of the pending merger and Offer, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending merger and Offer that could reduce anticipated benefits or cause the parties to abandon the transaction, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the possibility that TXNM’s shareholders may not approve the merger agreement, the risk that the parties may not be able to satisfy the conditions to the proposed merger in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed merger, the risk that the proposed merger and Offer and their announcement could have an adverse effect on the ability of TXNM to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. Other unpredictable or unknown factors not discussed in this communication could also have material adverse effects on forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

			TXNM ENERGY, INC.
			TEXAS-NEW MEXICO POWER COMPANY
			(Registrants)
Date: June 20, 2025			/s/ Gerald R. Bischoff
			Gerald R. Bischoff
			Vice President and Corporate Controller
			(Officer duly authorized to sign this report)