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TEXAS-NEW MEXICO POWER AND BANKS AGREE TO AMEND CREDIT FACILITIES; COMPANY FILES REGISTRATION STATEMENT

 TEXAS-NEW MEXICO POWER AND BANKS AGREE TO AMEND CREDIT FACILITIES;
 COMPANY FILES REGISTRATION STATEMENT
 FORT WORTH, Texas, Dec. 2 /PRNewswire/ -- Texas-New Mexico Power Company today announced that The Chase Manhattan Bank, as agent for two banking syndicates, has advised that the banks have unanimously reached an agreement in principle to amend the company's financing facilities for TNP One, Units 1 and 2. TNP One is a two-unit, 300 megawatt, lignite-fueled generating plant located in Robertson County, Texas.
 The agreement in principle will allow the holders of a proposed issue of the company's debentures to share on an equal basis in the collateral securing the bank loans. This modification is in addition to the changes to the financing facilities announced in September.
 The maturities of repayments under the financing facilities will be extended for Unit 1 by approximately 15 months and for Unit 2 by approximately 12 months. The extensions of the maturity dates will become effective after the company closes the sale of its proposed debt offerings discussed below and makes substantial prepayments to the banks.
 The amendments are also to provide for fees on the outstanding commitments and loans, for an increase in the applicable margins on the loans and for certain other covenants, including two earnings test for future dividends from the company to its parent, TNP Enterprises, Inc. (NYSE: TNP).
 Registration Statement Filed
 The company also announced that it has filed a registration statement with the Securities and Exchange Commission for the issuance of $130 million of non-redeemable secured debentures due in 1998. The company has granted the underwriter an over-allotment option, exercisable within 30 days of the offering, for up to $19.5 million of additional secured debentures.
 The company also amended its $120 million first mortgage bond registration statement filed on Oct. 11, 1991, to grant the underwriter an over-allotment option for the purchase of up to $10 million of additional first mortgage bonds. The offerings will be underwritten by Lehman Brothers. The majority of the proceeds from the two offerings will be applied toward the repayment of bank debt incurred in constructing Unit 1 and Unit 2 of the TNP One generating project. The company will use the proceeds to pay the banks an amount which will be sufficient to meet the repayments and prepayments required under the amendments.
 Texas-New Mexico Power Company is the Fort Worth-based, wholly owned subsidiary of TNP Enterprises, Inc. The company provides electric service to more than 200,000 customers in 90 towns and cities in the two states.
 -0- 12/2/91
 /CONTACT: D.R. Barnard of Texas-New Mexico Power, 817-731-0099, ext. 319/
 (TNP) CO: Texas-New Mexico Power Company ST: Texas IN: UTI SU: FNC


CK -- NY067 -- 8467 12/02/91 15:33 EST
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Publication:PR Newswire
Date:Dec 2, 1991
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