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TEXAS-NEW MEXICO POWER SELLS $260 MILLION IN DEBT SECURITIES

 TEXAS-NEW MEXICO POWER SELLS $260 MILLION IN DEBT SECURITIES
 FORT WORTH, Texas, Jan. 17 /PRNewswire/ -- Texas-New Mexico Power Company today announced the sale of $260 million in debt securities.
 The debt securities include $130 million of first mortgage bonds, Series T, and $130 million of secured debentures. The first mortgage bonds, bearing interest at 11-1/4 percent, will mature on Jan. 15, 1997. The secured debentures, bearing interest at 12-1/2 percent, will mature on Jan. 15, 1999. Lehman Brothers is the underwriter for both offerings.
 Net proceeds from both debt offerings will be used primarily to pay and prepay approximately $230 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 generating plant located in Robertson County, Texas. The balance of the net proceeds will be used to reimburse the company's treasury for construction expenditures, and for working capital and general corporate purposes.
 Such payments and prepayments on the bank loans will allow the remaining bank loan maturities under the financing facilities to be extended approximately 15 months. The payments and prepayments are to be made at the closing of the transaction for the sale of debt securities on Jan. 27, 1992. Pursuant to an understanding between the company and the underwriter, any exercise of the over allotment option for $19.5 million of the secured debentures would be subject to the same closing date; such proceeds would be used to prepay additional bank loans.
 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 amendments to the financing facilities that provide for such extensions.
 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 200,000 customers in 90 towns and cities in the two states.
 -0- 1/17/92
 /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:


CK -- NY028 -- 0972 01/17/92 12:05 EST
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Publication:PR Newswire
Date:Jan 17, 1992
Words:360
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