Item 1.01 Entry into a Material Definitive Agreement.

On June 18, 2021, Public Service Company of New Mexico ("PNM"), a wholly-owned subsidiary of PNM Resources, Inc., entered into a $75.0 million term loan agreement (the "Term Loan"), between PNM and Bank of America, N.A., as lender (the "Lender"). The Term Loan is effective as of June 18, 2021 and must be repaid on or before December 18, 2022 (the "Maturity Date"). PNM used the proceeds of the Term Loan to repay at maturity on June 18, 2021 PNM's existing $40.0 million term loan with the Lender, dated December 18, 2019, and for general corporate purposes.

PNM must pay interest on its borrowings under the Term Loan from time to time following funding and must repay all amounts on or before the Maturity Date.

The Term Loan includes customary covenants, including a covenant that requires the maintenance of a consolidated debt-to-consolidated capitalization ratio of less than or equal to 0.65 to 1.00 as of the last day of any fiscal quarter. The Term Loan also includes customary events of default, a cross default provision and a change of control provision. If an event of default occurs, the Lender may declare the obligations outstanding under the Term Loan to be due and payable. Such acceleration will occur automatically in the event of an insolvency or bankruptcy default.

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

The Lender 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 customary fees and expenses.

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

The information required by this item is included in Item 1.01 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.



(d) Exhibits.
Exhibit Number                  Description

99.1                              Term Loan Agreement, dated as of June 18, 2021, between Public
                                Service Company of New Mexico and Bank of America, N.A., as lender
104                             Cover Page in Inline XBRL format

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