New Mexico DOJ Raises Concerns Over Blackstone's Acquisition of TXNM
The New Mexico Department of Justice has raised new concerns regarding Blackstone’s proposed acquisition of Texas-New Mexico Power Company (TXNM). In response to a compliance report filed by TXNM, the DOJ questioned whether replacement financing for repaying funds from its stock sale could indirectly burden ratepayers through Public Service Company of New Mexico. The state utility regulator had previously invalidated the transaction due to lack of prior approval and required repayment measures. TXNM borrowed $400 million via a Wells Fargo term loan, canceled 8 million shares issued during the deal, and repaid Troy TopCo, Blackstone’s affiliate. However, the DOJ requested more information on borrowing terms and potential impacts on credit metrics to ensure ratepayers are not affected. TXNM claims it has resolved financing issues and restored its financial standing. The acquisition remains under scrutiny as public concerns grow over customer protections. A petition from 50+ organizations seeks a state-led investment in TXNM, while the Public Regulation Commission continues evaluating regulatory compliance.
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Topics: M&A ratepayer impact utility regulation