as Trustee SUPPLEMENTAL INDENTURE NO. 2
EXHIBIT
4.3
Execution Version
PNM
RESOURCES, INC.
AND
THE
BANK OF NEW YORK TRUST COMPANY, N.A.
as
Trustee
______________________________________
SUPPLEMENTAL
INDENTURE NO. 2
Dated
as of May 16, 2008
To
INDENTURE
Dated
as of March 15, 2005
______________________________________
43138.3
THIS SUPPLEMENTAL INDENTURE NO. 2
(this “Supplemental Indenture No.
2), dated as of May 16, 2008, between PNM RESOURCES, INC., a New
Mexico corporation (the “Company”), and THE BANK OF NEW YORK TRUST COMPANY,
N.A., a national banking association (as successor to JPMorgan Chase
Bank, N.A.), as Trustee (the “Trustee”).
RECITALS
OF THE COMPANY
The Company has executed and delivered
to the Trustee an Indenture dated as of March 15, 2005, between the Company and
the Trustee (the “Base
Indenture”) to provide for the issuance from time to time of one or more
series of the Company’s senior notes (the “Notes”).
The
Company has executed and delivered to the Trustee a Supplemental Indenture No.
1, dated as of March 30, 2005 (“Supplemental Indenture No.
1”), between the Company and JPMorgan Chase Bank, N.A., as Trustee,
supplemental to the Base Indenture (the Base Indenture, as supplemented by
Supplemental Indenture No. 1, the “Indenture”), to
establish the form and terms of a series of Notes known as the Company’s Senior
Notes, Series A (the “Series A
Notes”).
On March 30, 2005, the Company issued
$247,250,000 aggregate principal amount of the Series A Notes (the “Initial Series A
Notes”).
On
October 2, 2006, The Bank of New York Trust Company, N.A. succeeded to JPMorgan
Chase Bank, N.A. as Trustee.
On May 9,
2008, the Initial Series A Notes were the subject of a Successful Remarketing
(as defined in Section 5.02(b)(iv) of the Purchase Contract and Pledge Agreement
(as defined in Section 1.02(e) hereof)).
The
Company has elected, pursuant to Section 2.02 of Supplemental Indenture No. 1,
to extend the Maturity Date (as defined in Section 2.02 of Supplemental
Indenture No. 1) of the Initial Series A Notes in connection with the Successful
Remarketing and the Company desires to specify such extension of the Maturity
Date in this Supplemental Indenture No. 2 and in the form of the Series A
Notes.
In
connection with the Successful Remarketing, the Coupon Rate (as defined in
Supplemental Indenture No. 1) of the Initial Series A Notes was reset by the
Remarketing Agents (as defined in the Remarketing Agreement (as defined in
Section 1.02(e) hereof)) to the Reset Rate (as defined in the Remarketing
Agreement) with effect from the Purchase Contract Settlement Date (as defined in
the Purchase Contract and Pledge Agreement), as set forth in Section 8.03 of
Supplemental Indenture No. 1, and the Company desires to specify such reset
Coupon Rate in this Supplemental Indenture No. 2 and in the form of the Series A
Notes.
Section
9.01 of the Base Indenture provides that, without the consent of any Holders,
the Company, when authorized by or pursuant to a Board Resolution, and the
Trustee, at any time and from time to time, may enter into one or more
indentures supplemental to the Indenture for any of the purposes as provided in
Section 9.01 of the Base Indenture, and the Company desires to amend the
Indenture including the form of Series A Notes, as hereinafter
provided.
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In
connection with the Successful Remarketing, the Company desires to prepare and
execute and cause the Trustee to authenticate and deliver Initial Series A
Notes, as modified to conform to the provisions of this Supplemental Indenture
No. 2, and to exchange such Initial Series A Notes, as so modified, for
Outstanding Initial Series A Notes.
Pursuant
to Section 3.01 of the Base Indenture, the Company may increase the aggregate
principal amount of a series of Notes without the consent of the Holders of the
Notes of such series to the maximum aggregate principal amount authorized with
respect to such series as increased, and the Company desires to so increase the
aggregate principal amount of the Series A Notes and to provide for the issuance
of additional Series A Notes (the “Additional Series A
Notes”).
The
Company has requested that the Trustee join in the execution and delivery of
this Supplemental Indenture No. 2, and all requirements necessary to make this
Supplemental Indenture No. 2 a valid, binding and enforceable instrument in
accordance with its terms, and to make the Additional Series A Notes, when
executed by the Company and authenticated and delivered by the Trustee, the
valid, binding and enforceable obligations of the Company, have been satisfied
and performed, and the execution and delivery of this Supplemental Indenture No.
2 has been duly authorized in all respects.
NOW,
THEREFORE, in consideration of the covenants and agreements set forth herein and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as
follows:
ARTICLE
I
DEFINITIONS
Section 1.01 Relation to Base
Indenture. This Supplemental Indenture No. 2 constitutes an
integral part of the Indenture.
Section 1.02 Definition of
Terms. For all purposes of this Supplemental Indenture No.
2:
(a) Capitalized terms used
herein without definition shall have the meanings set forth in the Base
Indenture, or, if not defined in the Base Indenture, in Supplemental Indenture
No. 1, in the Purchase Contract and Pledge Agreement or in the Remarketing
Agreement;
(b) a term defined anywhere
in this Supplemental Indenture No. 2 has the same meaning
throughout;
(c) the singular includes
the plural and vice versa;
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(d) headings are for
convenience of reference only and do not affect interpretation; and
(e) the following terms have
meanings given to them in this Section 1.02(e):
“Beneficial Owner” has the
meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange
Act, except that in calculating the beneficial ownership of
any particular “person” (as that term is used in Section 13(d)(3) of
the Exchange Act), such “person” will be deemed to have beneficial ownership of
all securities that such “person” has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
exercisable only upon the occurrence of a subsequent condition.
“Capital Stock” means:
(1)
in the case of a corporation, corporate stock;
(2)
in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;
(3)
in the case of a partnership or limited liability company, partnership or
membership interests (whether general or limited); and
(4)
any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of, the
issuing Person.
“Change of
Control” means the occurrence of
any of the following:
(1)
the direct or indirect sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the
Company and its Subsidiaries taken as a whole to any “person” (as that term is
used in Section 13(d)(3) of the Exchange Act, including any “group” with the
meaning of the Exchange Act);
(2)
the adoption of a plan relating to the liquidation or dissolution of the
Company;
(3)
any “person” (as defined above) becomes the Beneficial Owner, directly or
indirectly, of more than 50% of the Voting Stock of the Company, measured by
voting power rather than number of shares;
(4)
the first day on which a majority of the members of the Board of Directors of
the Company are not Continuing Directors;
(5)
the first day on which the Company ceases to be a Beneficial Owner of a majority
of the Voting Stock of either Public Service Company of New Mexico or Texas-New
Mexico Power Company;
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(6)
the Company consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, the Company, in any such event
pursuant to a transaction in which any of the outstanding Voting Stock of the
Company or such other Person is converted into or exchanged for cash, securities
or other property, other than any such transaction where our outstanding Voting
Stock immediately prior to such transaction is converted into or exchanged for
Voting Stock (other than Disqualified Stock) of the surviving or transferee
Person constituting a majority of the outstanding shares of such Voting Stock of
such surviving or transferee Person (immediately after giving effect to such
issuance).
“Change of Control
Offer,” “Change
of Control Payment,” and “Change of Control Payment
Date” shall have the meanings set forth below in Section
2.03(a)(1).
“Continuing Directors”
means, as of any date of determination, any member of the Board of Directors of
the Company who:
(1) was a
member of such Board of Directors on the date hereof; or
(2) was
nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election.
“Control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ability
to exercise voting power, by contract or otherwise. A Person shall be deemed to
Control another Person if such Person directly or indirectly owns or controls
more than 50% or more of the other Person’s capital stock. The terms
“Controlling” and “Controlled” have meanings correlative thereto.
“Credit Facility”
means the Amended and Restated Credit Agreement dated August 15, 2005 among the
Company and First Choice Power, L.P., as borrowers, the lenders named therein
and Bank of America, N.A., as administrative agent.
“Debt” means (1) any
outstanding debt for money borrowed and (2) any indebtedness evidenced by notes,
debentures, bonds or other similar instruments.
“Disqualified Stock”
means any Capital Stock that, by its terms (or by the terms of any security into
which it is convertible, or for which it is exchangeable, in each case at the
option of the holder of the Capital Stock), or upon the happening of any event
(other than as a result of an optional redemption by the issuer thereof),
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or redeemable at the option of the holder of the Capital Stock, in
whole or in part, on or prior to the date that is 91 days after the date on
which the notes mature.
“Hedging
Obligations”
means, with respect to any specified Person, the obligations of such Person
under: (1) interest rate swap agreements (whether from fixed to floating or from
floating to fixed), interest rate cap agreements and interest rate collar
agreements; (2) other agreements or arrangements designed to manage interest
rates or interest rate risk; and (3) other agreements or arrangements designed
to protect such Person against fluctuations in currency exchange rates or
commodity prices.
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“Liens” shall have the
meaning specified below in Section 2.03(a)(1) hereof.
“Operating Property”
means (1) any interest in real property owned directly by the Company and (2)
any asset owned directly by the Company that is depreciable in accordance with
generally accepted accounting principles.
“Payment Default”
means a default under any mortgage, indenture or instrument under which the
Company may issue or by which there may be secured or evidenced any Debt of the
Company (or the payment of which is guaranteed by the Company), if that default
is caused by a failure to pay principal of, or interest or premium, if any, on
such Debt prior to the expiration of the grace period provided in such
Debt.
“Purchase Contract and Pledge
Agreement” means the Purchase Contract and Pledge Agreement dated as of
March 30, 2005 among the Company, The Bank of New York Trust Company, N.A. (as
successor to JPMorgan Chase Bank, N.A.), as Purchase Contract Agent (as such
term is defined in the Purchase Contract and Pledge Agreement), and U.S. Bank
Trust National Association, as Collateral Agent, Custodial Agent and Securities
Intermediary (as such terms are defined in the Purchase Contract and Pledge
Agreement).
“Remarketing
Agreement” means the Remarketing Agreement, dated as of March 30, 2005,
as amended and supplemented by the Supplemental Remarketing Agreement, dated as
of May 6, 2008, among the Company, the Remarketing Agents named therein and the
Purchase Contract Agent named therein.
“Sale and Lease-Back
Transaction” means any arrangement with any entity providing for the
leasing to the Company of any Operating Property (except for temporary leases
for a term, including any renewal thereof, of not more than 48 months), which
Operating Property has been or is to be sold or transferred by the Company to
such entity; provided, however, Sale and Lease-Back Transaction shall not
include any arrangement (i) first entered into prior to the date of the
Indenture and (ii) involving the exchange of any Operating Property for any
property subject to an arrangement specified in the preceding clause
(i).
“Subsidiary” means,
with respect to any Person (the ‘‘parent’’) at any date, any corporation,
limited liability company, partnership, association or other entity the accounts
of which would be consolidated with those of the parent in the parent’s
consolidated financial statements if such financial statements were prepared in
accordance with generally accepted accounting principles as of that date, as
well as any other corporation, limited liability company, partnership,
association or other entity (1) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting
power or, in the case of a partnership, more than 50% of the general partnership
interests are, as of that date, owned, controlled or held or (2) that is, as of
that date, otherwise Controlled (within the meaning of the first sentence of the
definition of ‘‘Control’’), by the parent or one or more subsidiaries of the
parent.
5
“Value” means, with
respect to a Sale and Lease-Back Transaction, as of any particular time, the
amount equal to the greater of (1) the net proceeds to the Company from the sale
or transfer of the property leased pursuant to such Sale and Lease-Back
Transaction or (2) the net book value of such property, as determined in
accordance with generally accepted accounting principles by the Company at the
time of entering into such Sale and Lease-Back Transaction, in either case
multiplied by a fraction, the numerator of which shall be equal to the number of
full years of the term of the lease that is part of such Sale and Lease-Back
Transaction remaining at the time of determination and the denominator of which
shall be equal to the number of full years of such term, without regard, in any
case, to any renewal or extension options contained in such lease.
“Voting Stock” of any
Person as of any date means the Capital Stock of such Person that is at the time
entitled to vote in the election of the Board of Directors of such
Person.
The terms
“Additional Series A Notes,” “Base Indenture, ” “Company,” “Coupon Rate,”
“Indenture,” “Initial Series A Notes,” “Notes,” “Purchase Contract
Settlement Date,” “Maturity Date,” “Remarketing Agents,” “Reset Rate,”
“Successful Remarketing,” “Supplemental Indenture No. 1,” “Supplemental
Indenture No. 2,” “Series A Notes” and “Trustee” shall have the respective
meanings set forth in the recitals to this Supplemental Indenture No. 2 and the
paragraph preceding such recitals.
ARTICLE II
CHANGES TO THE TERMS AND
CONDITIONS OF
THE SERIES A
NOTES
Section
2.01 Maturity Date.
Pursuant to Section 2.02 of Supplemental Indenture No. 1, from and after May 16,
2008, the Maturity Date of the Series A Notes is and shall be May 15,
2015.
Section
2.02 Coupon
Rate. Pursuant to the Remarketing Agreement and Section 8.03
of Supplemental Indenture No. 1, on and after May 16, 2008, the Coupon Rate is
and shall be 9.25% per annum.
Section
2.03. Pursuant to Section 9.01 of the Base Indenture, the Indenture
is hereby amended, effective from and after May 16, 2008, to add the following
provisions:
(a) Restrictions on
Liens.
(1) Except
as permitted by Subsection 2.03(a)(2) below, for so long as any of the Series A
Notes are Outstanding, the Company will not issue, assume, or guarantee any Debt
secured by any mortgage, security interest, pledge, lien, charge or similar
encumbrance (collectively, “Liens”) of or upon
any of the property or assets of the Company or upon any property or assets of
any Subsidiary of the Company, owned as of the date specified hereof or
thereafter acquired, without also securing the Outstanding Series A Notes
(together with, if the Company shall so determine, any other Debt of or
guaranteed by the Company ranking senior to, or equally with, the Series A
Notes) equally and ratably with such Debt so long as such other Debt is so
secured; provided, however, that the foregoing restriction shall not apply to
Debt secured by any of the following:
6
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(i)
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Liens
created, incurred, assumed or existing on property of the Company in favor
of the lenders, letter of credit issuers or hedge providers under the
Credit Facility and related Hedging Obligations in an aggregate principal
amount up to $600 million;
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(ii)
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Liens
on any property or shares of stock of a Person existing at the time of a
sale, lease or other disposition of all or substantially all of the
properties or assets of a Person or an operating business of a Person to
the Company; provided, however, that such Lien was not incurred in
anticipation of the merger, consolidation, or sale, lease, other
disposition or other such
transaction;
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(iii)
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Liens
on any property to secure all or part of the cost of acquiring,
constructing, developing, or repairing, altering or improving the
property, or to secure Debt incurred to provide funds for any of these
purposes or for the reimbursement of funds previously expended for any of
these purposes; provided, however, that the principal amount of Debt
secured by each such Lien was incurred concurrently with, or within 18
months of, the acquisition, construction, development, repair, alteration
or improvement of such property and does not exceed the cost (as
determined in accordance with generally accepted accounting principles) to
the Company of the property subject to the
Lien;
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(iv)
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Liens
in favor of the United States of America or any State thereof, or any
department, agency, or instrumentality or political subdivision of the
United States of America or any State thereof, or for the benefit of
holders of securities issued by any such entity, to secure any Debt
incurred for the purpose of financing all or any part of the purchase
price or the cost of constructing, developing or repairing, altering, or
improving the property subject to such Liens;
or
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(v)
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the
extension, renewal or replacement of any Lien referred to above; provided,
however, that such extension, renewal or replacement Lien will be limited
to the same property that secured the Lien so extended, renewed or
replaced; and the maximum principal amount of Debt so secured and not
otherwise authorized by the previous clauses shall not exceed the maximum
principal amount of Debt, plus any premium or fee payable in connection
with any such extension, renewal or replacement, so secured at the time of
such extension, renewal, or
replacement.
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(2) Notwithstanding
the provisions of Section 2.03(a)(1), so long as any Series A Notes are
Outstanding, the Company may issue, assume, or guarantee Debt, or permit to
exist Debt, secured by Liens that would not be permitted by the restrictions
contained in Section 2.03(a)(1) provided that, at the time of incurrence of such
Debt, the sum, without duplication, of:
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(i)
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the
amount of Debt to be incurred and secured by such
Liens;
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(ii)
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the
aggregate principal amount of all existing Debt, secured by such Liens;
and
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(iii)
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the
Value of all Sale and Lease-Back Transactions in existence at such time
(other than (A) any Sale and Lease-Back Transaction that, if such Sale and
Leaseback Transaction had been a Lien, would have been permitted by
Section 2.03(a)(1), (B) Sale and Lease-Back Transactions permitted by
Section 2.03(b) because the commitment by or on behalf of the purchaser
was obtained no later than eighteen (18) months after the later of the
events described in (i) and (ii) of Section 2.03(b), and (C) Sale and
Lease-Back Transactions as to which application of amounts have been made
in accordance with clause (y) of Section
2.03(b))
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does not
exceed at such time $100,000,000.
(3) If
at any time the Company shall issue, assume, or guarantee any Debt secured by
any Lien and if Section 2.03(a)(1) requires that the Outstanding Series A Notes
be secured equally and ratably with such Debt, the Company will promptly execute
or cause to be executed, at its expense, any instruments necessary to so equally
and ratably secure the Outstanding Series A Notes and deliver the same to the
Trustee along with:
(i) An
Officers’ Certificate stating that the covenant of the Company contained in
Section 2.03(a)(1) has been complied with; and
(ii) An
Opinion of Counsel to the effect that the Company has complied with the covenant
contained in Section 2.03(a)(1), and that any instrument executed or caused to
be executed by the Company in the performance of such covenant complies with the
requirements of such covenant.
In the event that the Company shall
hereafter secure Outstanding Series A Notes equally and ratably with any other
obligation or indebtedness pursuant to the provisions of this Section 2.03(a),
the Trustee is hereby authorized to enter into an indenture or agreement
supplemental hereto and any intercreditor or similar agreement and to take such
action, if any, as it may deem advisable.
(b) Sale Leaseback
Transaction. So long as any Series A Notes are Outstanding,
the Company will not enter into any Sale and Lease-Back Transaction with respect
to any Operating Property if the commitment by the purchaser was obtained more
than 18 months after the later of (i) the completion of the acquisition,
construction, or development of the Operating Property or (ii) the placing in
operation of the Operating Property or of the Operating Property as constructed,
developed, or substantially repaired, altered, or improved, unless:
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(x) the
Company is entitled pursuant to Section 2.03(a)(1) or Section 2.03(a)(2) to
issue, assume, or guarantee Debt secured by a Lien on such Operating Property
without equally and ratably securing the Series A Notes; or
(y) within
180 days after the effective date of the Sale and Lease-Back Transaction, the
Company applies or causes to be applied to the retirement of any Debt of the
Company ranking senior to, or equally with, the Series A Notes:
(aa) in
the case of a sale or transfer for cash, an amount equal to the net proceeds
thereof (but not in excess of the net book value of the Operating Property at
the date of sale or transfer); or
(bb) in
the case of a sale or transfer otherwise than for cash, an amount equal to the
fair value (as determined by the Company’s Board of Directors) of the Operating
Property so leased;
provided,
however, that the amount to be applied to the retirement of Debt will be reduced
by an amount equal to the principal amount of any Debt voluntarily retired by
the Company within such 180-day period (plus any premium or fee paid in
connection with any redemption in accordance with the terms of such Debt),
excluding retirement pursuant to mandatory sinking fund or prepayment provisions
and payments at maturity.
(c) Repurchase at Holders’
Option.
(1)
Subject to Subsection 2.03(c)(2) below, if a Change of Control occurs, the
Company will be required to make an offer (a “Change of Control
Offer”) to each Holder of Series A Notes to repurchase all or any part
(equal to $1,000 or an integral multiple of $1,000) of that Holder’s Series A
Notes. In the Change of Control Offer, the Company will offer a payment (the
“Change of Control
Payment”) in cash equal to 101% of the aggregate principal amount of the
Series A Notes repurchased plus accrued and unpaid interest on the Series A
Notes repurchased, if any, to the date of purchase (the “Change of Control Payment
Date”). Within ten days following any Change of Control, the
Company will mail a notice to each Holder of Series A Notes describing (A) the
transaction or transactions that constitute the Change of Control and offering
to repurchase notes on the Change of Control Payment Date specified in the
notice, which date will be no earlier than 30 days and no later than
60 days from the date such notice is mailed, and (B) the procedures
determined by the Company, consistent with this Supplemental Indenture No. 2,
that a Holder must follow in order to have its Series A Notes
repurchased.
On the
Change of Control Payment Date, the Company will, to the extent
lawful:
(i)
accept for payment all Series A Notes or portions of Series A Notes (of $1,000
and integral multiples of $1,000) properly tendered pursuant to the Change of
Control Offer;
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(ii)
deposit with the Trustee an amount equal to the Change of Control Payment in
respect of all Series A Notes or portions of Series A Notes properly tendered
pursuant to the Change of Control Offer; and
(iii)
deliver or cause to be delivered to the Trustee the Series A Notes properly
accepted together with an Officers’ Certificate stating the aggregate principal
amount of Series A Notes or portions of Series A Notes being purchased by the
Company.
The
Trustee will promptly mail to each Holder of Series A Notes properly tendered
the Change of Control Payment for such Series A Notes, and the Trustee will
promptly authenticate and mail (or cause to be transferred by book entry) to
each Holder a new Series A Note equal in principal amount to any unpurchased
portion of the Series A Notes surrendered, if any; provided that each new Series
A Note will be in a principal amount of $1,000 or an integral multiple of
$1,000.
If the
Change of Control Payment Date is on or after an interest payment record date
and on or before the related Interest Payment Date, any accrued and unpaid
interest, if any, will be paid to the Holder in whose name a Series A Note is
registered at the close of business on such record date, and no other interest
will be payable to Holders who tender pursuant to the Change of Control
Offer.
The
Company will publicly announce the results of the Change of Control
Offer on or as soon as practicable after the Change of Control Payment
Date.
To the
extent that the provisions of any securities laws or regulations conflict with
this Section 2.03(c), the Company will comply with the applicable securities
laws and regulations and will not be deemed to have breached its obligations
under this Section 2.03(c) by virtue of such conflict.
(2) Prior
to making a Change of Control Payment, and as a condition to such payment (i)
the requisite holders of each issue of Debt issued under an indenture or other
agreement that would be violated by such payment shall have consented to such
Change of Control Payment being made and waived the event of default, if any,
caused by the Change of Control or (ii) the Company will repay all outstanding
Debt issued under an indenture or other agreement that would be violated by a
payment to the Holders of Series A Notes under a Change of Control Payment or
(iii) the Company must offer to repay all such Debt, and make payments to the
holders of such Debt that accept such offer, and obtain waivers of any event of
default from the remaining holders of such Debt. The Company
covenants to effect such repayment or obtain such consent prior to making a
Change of Control Payment.
(3) The
Company will not be required to make a Change of Control Offer upon a Change of
Control if a third party makes the Change of Control Offer in the manner, at the
times and otherwise in compliance with the requirements set forth in Subsection
2.03(c)(1) applicable to a Change of Control Offer made by the Company and
purchases all Series A Notes properly tendered and not withdrawn under the
Change of Control Offer.
(d) Amended Event of
Default. Only with respect to the Series A Notes,
Section 5.01(1) of the Base Indenture is hereby amended and restated as follows:
“default in the payment of any interest upon any Series A Note when it becomes
due and payable, and continuance of such default for a period of 30
days.”
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(e) Additional Event of
Default. Pursuant to Section 5.01(7) of the Base
Indenture, the following are added as new Events of Default only with respect to
the Series A Notes:
“(8)
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default
under any mortgage, indenture or instrument under which the Company may
issue or by which there may be secured or evidenced any Debt of the
Company (or the payment of which is guaranteed by the Company), whether
such Debt or guarantee now exists or is created after May 16, 2008 (the
date of execution of Supplemental Indenture No. 2, dated as of May 16,
2008, between the Company and the Trustee), if that
default:
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(a)
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is
caused by a Payment Default; or
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(b)
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results
in the acceleration of such Debt prior to its stated
maturity,
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and, in
each case, the principal amount of any such Debt, together with the principal
amount of any other such Debt under which there has been a Payment Default or
the maturity of which has been so accelerated, aggregates $20,000,000 or more;
or
(9)
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failure
by the Company to pay any final judgment in excess of $20,000,000 or one
or more final judgments in excess of $40,000,000 in the aggregate (in each
case, net of any amounts which a reputable and creditworthy insurance
company has acknowledged liability for in writing), entered by a court or
courts of competent jurisdiction (not subject to appeal), which judgments
are not paid, discharged or stayed for a period of 60 days after the date
on which the right to appeal has
expired.”
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(f) Interest Payment
Dates. From and after May 16, 2008, the Interest Payment Dates
for the Series A Notes are and shall be May 15 and November 15 of each
year.
ARTICLE
III
AMENDMENT OF BASE
INDENTURE
Section
3.01. The Base Indenture is hereby amended by deleting the
defined term “Corporate Trust Office” in Section 1.01 of the Base Indenture in
its entirely and replacing it with the following:
“‘Corporate Trust
Office’ means the office of the Trustee at which at any particular time
its corporate trust business in Los Angeles, California shall be principally
administered, which office as of the date of this instrument is located at 000
Xxxxx Xxxxxx Xxxxxx, Xxxxx 000, Xxx Xxxxxxx, Xxxxxxxxxx 00000, except that with
respect to presentation of Notes for payment or for registration of transfer or
exchange, such term shall mean the office or agency of the Trustee at which at
any particular time its corporate agency business shall be conducted, which
office at the date of this instrument is located at 000 Xxxxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000; Attention: Corporate Trust Division - Corporate Finance
Unit, or, in the case of any of such offices or agency, such other address as
the Trustee may designate from time to time by notice to the Holders and the
Company.”
11
ARTICLE
IV
FORM OF SERIES A
NOTES; EXCHANGE OF INITIAL SERIES A NOTES
Section
4.01 Form
of Series A Note. From and after the Purchase Contract
Settlement Date, the Series A Notes and the Trustee’s Certificate of Authentication to be
endorsed thereon are to be substantially in the form attached as Exhibit A
hereto, with such changes therein as the officers of the Company executing the
Series A Notes (by manual or facsimile signature) may approve, such approval to
be conclusively evidenced by their execution thereof.
Section
4.02 Exchange of Series A
Notes. Series A Notes in the aggregate principal amount of up
to $247,250,000 may from time to time, upon execution of this Supplemental
Indenture No. 2, be executed by the Company and delivered to the Trustee for
authentication and delivery, and, upon Company Order, the Trustee shall
thereupon authenticate and deliver said Series A Notes to the Holders of, and in
exchange for a like principal amount of, Outstanding Initial Series A
Notes.
ARTICLE
V
ADDITIONAL SERIES A
NOTES
Section
5.01 Additional Series A
Notes. Pursuant to Section 3.01 of the Base Indenture, the
Company hereby elects to increase the aggregate principal amount of the Series A
Notes to $350,000,000 and to issue up to $102,750,000 aggregate principal amount
of Additional Series A Notes. The Additional Series A Notes shall
have identical terms as the Initial Series A Notes, as modified by Articles II
and III of this Supplemental Indenture No. 2, and shall be in the form of the
Series A Notes provided in Section 4.01 of this Supplemental Indenture No. 2,
except that the original date of issue of the Additional Series A Notes shall be
May 16, 2008, the original interest accrual date of the Additional Series A
Notes shall be May 16, 2008 and the initial Interest Payment Date shall be
November 15, 2008. The Additional Series A Notes shall be a part of
the Series A Notes, together with the Initial Series A Notes, and the Initial
Series A Notes and the Additional Series A Notes shall be a single class for all
purposes of the Indenture, as supplemented and amended by this Supplemental
Indenture No. 2.
Section
5.02 Future
Issuances of Additional Series A Notes. Additional Series A
Notes may from time to time, upon execution of this Supplemental Indenture No.
2, be executed by the Company and delivered to the Trustee for authentication,
and the Trustee shall thereupon authenticate and deliver said Additional Series
A Notes upon the execution and delivery of a Company Order pursuant to Section
3.03 of the Base Indenture, and upon the satisfaction of the other conditions
set forth in such Section 3.03, without any further action by the Company (other
than as required by the Base Indenture).
12
ARTICLE
VI
MISCELLANEOUS
Section
6.01 Ratification of
Indenture. The Base Indenture, as supplemented by Supplemental Indenture
No. 1 and as supplemented and amended by this Supplemental Indenture No. 2, is
in all respects ratified and confirmed, and this Supplemental Indenture No. 2
shall be deemed part of the Base Indenture in the manner and to the extent
herein and therein provided.
Section
6.02 Trustee Not Responsible for
Recitals. The recitals herein and in the Series A Notes are made by the
Company and not by the Trustee, and the Trustee assumes no responsibility for
the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this Supplemental Indenture No. 2 or of the
Series A Notes. The Trustee shall not be accountable for the use or
application by the Company of the Series A Notes or of the proceeds
thereof.
Section
6.03 New York Law To
Govern. THIS SUPPLEMENTAL INDENTURE NO. 2 AND EACH SERIES A NOTE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
(INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW OR ANY SUCCESSOR TO SUCH STATUTE).
Section
6.04 Separability. In case
any one or more of the provisions contained in this Supplemental Indenture No. 2
or in the Series A Notes shall for any reason be held to be invalid, illegal or
unenforceable in any respect, then, to the extent permitted by law, such
invalidity, illegality or unenforceability shall not affect any other provisions
of this Supplemental Indenture No. 2 or of the Series A Notes, but this
Supplemental Indenture No. 2 and the Series A Notes shall be construed as if
such invalid or illegal or unenforceable provision had never been contained
herein or therein.
Section
6.05 Counterparts. This
Supplemental Indenture No. 2 may be executed in any number of counterparts each
of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.
13
IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture No. 2 to be duly executed
as of the day and year first above written.
PNM
RESOURCES, INC.
|
By: /s/ Xxxxxxx X.
Xxxxxx
|
Xxxxxxx X. Xxxxxx
Executive Vice President
and
Chief
Financial Officer
|
By: /s/ Xxxxx X.
Xxxx
|
Xxxxx X. Xxxx
Vice President and
Treasurer
|
THE BANK OF NEW YORK TRUST
COMPANY, N.A., as Trustee
|
|
By: /s/ Xxxxxxx
Xxxxxx
|
Xxxxxxx Xxxxxx
Assistant Vice
President
Exhibit
A
[IF
THIS SENIOR NOTE IS TO BE A GLOBAL NOTE, INSERT:]
THIS
SENIOR NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY OR A
NOMINEE OF THE DEPOSITORY TRUST COMPANY. THIS SENIOR NOTE IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY TRUST
COMPANY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST
COMPANY TO A NOMINEE OF THE DEPOSITORY TRUST COMPANY OR BY A NOMINEE OF THE
DEPOSITORY TRUST COMPANY TO THE DEPOSITORY TRUST COMPANY OR ANOTHER NOMINEE OF
THE DEPOSITORY TRUST COMPANY.
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
PNM
RESOURCES, INC.
Senior
Note, Series A
CUSIP:
______________
ISIN:
________________
No.
|
$
|
PNM RESOURCES, INC., a
corporation duly organized and existing under the laws of New Mexico (herein
called the “Company”, which term
includes any successor corporation under the Indenture hereinafter referred to),
for value received, hereby promises to pay to _________, or registered assigns,
[Insert in
certificated Senior Notes
- DOLLARS ($ )][Insert in Global
Notes - the principal sum
as set forth in the Schedule of Increases or Decreases In Senior Note attached
hereto], on May 15, 2015 (the “Maturity Date”), and
to pay interest thereon from May 16, 2008 or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, semi-annually
in arrears on May 15 and November 15 of each year (each, an “Interest Payment
Date”), commencing November 15, 2008, at the rate of 9.25% per annum (the
“Coupon Rate”),
until the principal hereof is paid or duly provided for or made available for
payment. This Senior Note shall bear interest, to the extent
permitted by
A-1
law, on
any overdue principal and interest at the Coupon Rate from and after May 16,
2008, compounded semi-annually. The amount of interest payable for any full
Interest Period will be computed on the basis of a 360-day year consisting of
twelve 30-day months. The amount of interest payable for any period shorter than
a full Interest Period for which interest is computed will be computed on the
basis of a 30-day month and, for any period less than a month, on the basis of
the actual number of days elapsed per 30-day month. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Senior Note
(or one or more predecessor Senior Notes) is registered at the close of business
on the Record Date for such Interest Payment Date.
Payment
of the principal of and interest on this Senior Note will be made at the office
or agency of the Company maintained for that purpose in The Borough of
Manhattan, The City of New York, which shall initially be the Corporate Trust
Office of the Trustee, in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private
debts; provided, however, that payment of interest may be made at the option of
the Company by check mailed to the Person entitled thereto at such address as
shall appear in the Note Register or by wire transfer to an account
appropriately designated by the Person entitled to payment by written notice
given at least ten calendar days prior to the Interest Payment
Date.
Reference
is hereby made to the further provisions of this Senior Note set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.
Unless
the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by manual signature, this Senior Note shall
not be entitled to any benefit under the Indenture or be valid or obligatory for
any purpose.
IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed under its corporate
seal.
PNM RESOURCES, INC.
|
By:_____________________ |
Name:
Title:
Attest:
__________________________
[Assistant]
Secretary
TRUSTEE’S
CERTIFICATE OF AUTHENTICATION
A-2
This is
one of the Notes of the series designated therein referred to in the
within-mentioned Indenture.
Dated:
|
THE BANK OF NEW
YORK
TRUST COMPANY, N.A.,
|
as
Trustee
|
By:_____________________________
|
Authorized
Officer
REVERSE
OF SENIOR NOTE
This
Senior Note is one of a duly authorized issue of notes of the Company (herein
called the “Senior
Notes”), issued and to be issued in one or more series under an Indenture
(the “Base
Indenture”), dated as of March 15, 2005, between the Company and The Bank
of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, N.A.), as
Trustee (herein called the “Trustee”, which term
includes any successor trustee), as supplemented by Supplemental Indenture No.
1, dated as of March 30, 2005, between the Company and the Trustee (“Supplemental Indenture No.
1”) and as amended and supplemented by Supplemental Indenture No. 2,
dated as of May 16, 2008, between the Company and the Trustee (“Supplemental Indenture No.
2” and, together with the Base Indenture and Supplemental Indenture No.
1, the “Indenture”), to which
Indenture reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the holders of the Senior Notes and of the terms upon which the
Senior Notes are, and are to be, authenticated and delivered. This
Senior Note is one of the series designated on the face hereof.
All terms
used in this Senior Note that are defined in the Indenture shall have the
meaning assigned to them in the Indenture.
The
Company may not redeem the Senior Notes at its option prior to the Maturity
Date.
The
Senior Notes are not entitled to the benefit of any sinking fund and Article
XIII of the Base Indenture shall not apply to the Senior Notes.
If an
Event of Default with respect to Notes of this series shall occur and be
continuing, the principal of the Senior Notes of this series may be declared due
and payable in the manner and with the effect provided in the
Indenture.
The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the holders of the Senior Notes at any time by the Company and the
Trustee with the consent of the holders of a majority in principal amount of the
Senior Notes of all series at the time outstanding considered as one class. The
Indenture also contains provisions permitting the holders of specified
percentages in principal amount of the Senior Notes at the time outstanding to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the holder of this Senior Note shall be conclusive and
binding upon such holder and upon all future holders of this Senior Note and of
any Senior Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Senior Note.
A-3
As
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Senior Note is registrable in the Note Register, upon
surrender of this Senior Note for registration of transfer at the office or
agency of the Company in any place where the principal of and interest on this
Senior Note are payable, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Note
Registrar duly executed by the holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Senior Notes of this series, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.
The
Senior Notes of this series are issuable only in registered form without coupons
in denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Senior Notes of
this series are exchangeable for a like aggregate principal amount of Senior
Notes of this series of a different authorized denomination, as requested by the
holder surrendering the same.
No
service charge shall be made for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith.
The
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Senior Note is registered as the owner hereof for all purposes,
whether or not this Senior Note is overdue, and neither the Company, the Trustee
nor any such agent shall be affected by notice to the contrary.
THIS
SENIOR NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW OR ANY SUCCESSOR TO SUCH STATUTE).
A-4
ASSIGNMENT
FOR VALUE
RECEIVED, the undersigned assigns and transfers this Senior Note
to:
_________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________
(Insert
assignee’s social security or tax identification number)
_________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________
(Insert
address and zip code of assignee)
and
irrevocably appoints
_________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________
agent to
transfer this Senior Note on the books of the Company. The agent may substitute
another to act for him or her.
Date:
|
_________
|
|||
Signature:
|
||||
___________________________________ | ||||
Signature
Guarantee:
___________________________________
|
(Sign
exactly as your name appears on the other side of this Senior Note)
A-5
SIGNATURE
GUARANTEE
Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Note Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
A-6
[Insert
in Global Notes or certificated Senior Notes]
SCHEDULE
OF INCREASES OR DECREASES IN SENIOR NOTE
The
initial principal amount of this Senior Note is $ ,000,000.
The following increases or decreases in a part of this Senior Note have been
made:
Date
|
Amount
of
decrease
in
principal
amount
of this
Senior
Note
|
Amount
of
increase
in
principal
amount
of this
Senior
Note
|
|
Principal
amount
of this
Senior
Note
following
such
decrease
or
increase
|
|
Signature
of
authorized
officer
of
Trustee
|
A-7