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TEXAS-NEW MEXICO POWER COMPANY SELLS $240 MILLION IN DEBT SECURITIES

 FORT WORTH, Texas, Sept. 21 /PRNewswire/ -- Texas-New Mexico Power Company today announced the sale of $240 million in debt securities. The debt securities include $100 million of first mortgage bonds, Series U, and $140 million of secured debentures. The first mortgage bonds, bearing interest at 9.25 percent, will mature on Sept. 15, 2000. The secured debentures, bearing interest at 10.75 percent, will mature on Sept. 15, 2003. Dillon, Read & Co. Inc. and Chase Securities, Inc. are the underwriters for both offerings.
 Net proceeds from both debt offerings, with available cash, will be used primarily to call for redemption approximately $22 million of outstanding first mortgage bonds and to pay, prepay and purchase approximately $221.75 million of outstanding bank loans under the company's financing facilities for TNP One, Units 1 and 2. TNP One is a two-unit, 300 megawatt, lignite-fueled, circulating fluidized bed generating plant located in Robertson County, Texas. The redemption of Series H, I, J, and K First Mortgage Bonds brings into effect a reduction in the interest coverage ratio requirement under the Bond Indenture for the issuance of additional First Mortgage Bonds. The reduction will allow the company to issue more bonds at this time than would otherwise have been possible.
 Pursuant to amendments to the credit facilities, such payments and prepayments on the bank loans will allow the remaining bank loan maturities under the financing facilities to be extended, subject to regulatory approval, to 1995 through 1998. The payments and prepayments are to be made at the closing of the offering and sale of debt securities to be held on Sept. 29, 1993. The Chase Manhattan Bank, as agent for the lending banks under the two financing facilities, has confirmed that the lending banks have approved the definitive documentation of the amendments to the financing facilities. After the reductions of the bank loans, $137.75 million will be the remaining balance of the $633.5 million of bank loans originally utilized to finance the construction of TNP One.
 Texas-New Mexico Power Company is the Fort Worth-based, wholly owned subsidiary of TNP Enterprises, Inc. (NYSE: TNP). The company provides electric service to more than 211,000 customers in 90 towns and cities in the two states.
 -0- 9/21/93
 /CONTACT: D. R. Barnard of Texas-New Mexico Power Company, 817/731-0099, ext. 319/
 (TNP)


CO: Texas-New Mexico Power Company ST: Texas IN: UTI SU:

SM -- NY068 -- 4234 09/21/93 14:11 EDT
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Publication:PR Newswire
Date:Sep 21, 1993
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