TXNM Energy, Inc. Debt Financing and Credit Agreement Amendments

TXNM Energy, Inc. (TXNM) announced the issuance of $70 million in 4.69% First Mortgage Bonds due December 18, 2031, by its subsidiary Texas-New Mexico Power Company (TNMP). These bonds were issued in a private placement and will be used for short-term debt repayment and general corporate purposes. The issuance is secured by a first mortgage lien on substantially all of TNMP's property. The indenture includes provisions for events of default and a bond repurchase requirement in case of specific events, including a change in control. Additionally, TXNM, along with its subsidiaries Public Service Company of New Mexico (PNM) and TNMP, entered into amendments to their respective credit agreements. These amendments extend the maturity dates of their revolving credit facilities to March 29, 2030, and include provisions to ensure that a planned merger does not constitute a change of control. TNMP's credit agreement was also amended to increase its aggregate principal amount to $300 million. TXNM also completed a pension risk transfer transaction, involving a single premium payment of $91,937,638 to Delaware Life Insurance Company to assume obligations for certain retirees, which is expected to result in a non-cash charge of approximately $60 million.