PNM Resources Inc. launched a public offering of 4.9 million shares of its common stock with a forward component.
The company expects to grant the underwriters a 30-day option to purchase up to an additional 735,000 common shares, according to a Jan. 7 news release.
In connection with the offering, PNM Resources expects to enter forward sale agreements with affiliates of Citigroup Global Markets Inc. and BofA Securities as forward purchasers for the sale of 4.9 million shares. The company also expects to enter into an additional forward sale agreements for the additional shares.
Settlement of the forward sale agreements is expected to occur within 12 months after the completion of the offering.
PNM Resources plans to use any net proceeds from the offering for general corporate purposes.
Citigroup, BofA Securities, Wells Fargo Securities LLC and Evercore Group LLC are acting as joint book-running managers of the offering. Citigroup and BofA Securities are the representatives of the underwriters of the offering.