TXNM, Blackstone Push Out Sale Completion Deadline
The leaders of TXNM Energy Inc. and Blackstone Infrastructure have extended the deadline for Blackstone’s roughly $11.5 billion planned purchase of the parent of PNM and TNMP. The move comes a few weeks after New Mexico regulators ordered the companies to undo a $400 million stock sale that was part of the deal they struck in May of last year.
When TXNM and Blackstone executives inked their agreement about 14 months ago, they granted each other the right to back out if their combination wasn’t completed by mid-August of this year. The deal included an extension of that so-called end date to Dec. 31 and allowed for both companies to agree to push it another three months from there. Last week, both parties agreed to push the deal termination date to May 31 of next year, saying it will give them more time to get the regulatory approvals they need.
The main hurdle in that process is getting the OK from the New Mexico Public Regulation Commission. That body on July 2 voided the $400 million stock deal from June of last year – which amounted to Blackstone Infrastructure acquiring more than 7% of TXNM’s stock – because the companies had violated state law by not getting prior permission. The order also slapped the companies with fines of $200,000 against Blackstone and $100,000 against TXNM.
To reverse the $400 million stock sale, TXNM is taking out a term loan from Wells Fargo Bank. The loan matures in early 2029 and TXNM plans to pay it off by issuing stock.
“We remain committed to our proposed partnership with Blackstone Infrastructure because it is critical to TXNM Energy’s long-term ability to provide clean, affordable and reliable power to the customers we serve,” Don Tarry, TXNM’s president and CEO, said in a statement. “We appreciate the NMPRC’s careful review of this case and look forward to further demonstrating why this partnership will strengthen the grid, support long-term investment, and deliver meaningful benefits for customers and communities across New Mexico and Texas.”
Shares of TXNM (Ticker: TXNM) have taken the recent news and events in stride. On the afternoon of July 21, they were changing hands at $58.05, up slightly on the day. Year to date, they’re down less than 2%, which leaves TXNM’s market capitalization at about $6.4 billion.
About the Author
Geert De Lombaerde
Senior Editor
A native of Belgium, Geert De Lombaerde has more than two decades of business journalism experience and writes about markets and economic trends for Endeavor Business Media publications T&D World, Healthcare Innovation, IndustryWeek, FleetOwner and Oil & Gas Journal. With a degree in journalism from the University of Missouri, he began his reporting career at the Business Courier in Cincinnati and later was managing editor and editor of the Nashville Business Journal. Most recently, he oversaw the online and print products of the Nashville Post and reported primarily on Middle Tennessee’s finance sector as well as many of its publicly traded companies.