PNM RESOURCES INC: Entering into a Material Definitive Agreement, Creating a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (Form 8-K)

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Section 1.01 Entering into a Material Definitive Agreement.

PNM term loan

On August 5, 2022, New Mexico Utility Company (“PNM”), a wholly owned subsidiary of PNM Resources, Inc.concluded a $225.0 million deferred draw term loan agreement (the “Term Loan”) between PNM, the Lending Parties and Royal Bank of Canada (the “Administrative Agent”) as administrative agent. The term loan is effective from August 5, 2022 and must be repaid no later than
February 5, 2024 (the due date “). PNM plans to use the proceeds of the term loan to repay the $75.0 million term loan with Bank of America, North America., date June 18, 2021 and for general corporate purposes.

PNM shall pay interest on its borrowings under the Term Loan from time to time after Financing and shall repay all amounts on or before the Maturity Date.

The term loan includes customary covenants, including a covenant that requires maintaining a funded debt to funded capitalization ratio of less than or equal to 0.65 to 1.00 on the last day of any fiscal quarter. The term loan also includes customary events of default, a cross default clause and a change of control clause. If an event of default occurs, the lenders may declare the outstanding obligations under the term loan to be due and payable. This acceleration will occur automatically in the event of insolvency or bankruptcy default.

The above description of the Term Loan is not complete and is qualified in its entirety by reference to the Term Loan, a copy of which is attached hereto as Schedule 10.1 and is incorporated herein by reference.

The Administrator performs normal banking (including as a lender under other facilities) and investment banking and advisory services from time to time for PNM and its affiliates, for which such party receives usual fees and expenses.

Item 2.03 Creation of a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant.

The information required by this section is included in Section 1.01 and incorporated herein by reference.

Item 9.01 Financial statements and supporting documents.

(d) Exhibits.

Exhibit Number              Description

10.1                          Term Loan     Agreement,     dated as     of     August 5, 2022, among
                            Public Service Company of New Mexico, the lender parties t    hereto and
                                Royal Bank of Canada    , as Administrati    ve Agent

104                         Cover Page Interactive Data File (embedded within Inline XBRL document).





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