PNM Resources has entered an interest-rate swap to switch a USD182 million floating-rate debt issue into a synthetic fixed-rate liability. Lisa Rister, director of financial risk management in Albuquerque, N.M., said it entered the swap to hedge the firm's exposure to fixed rates.
PNM has hedged the entire USD182 million deal, said Rister. The bonds mature in 2033 and 2038 and the swap has a 30-year maturity.
PNM shops around for swap counterparties by criteria including price and relationship, explained Rister, declining to name which firm it worked with for the recent hedge.
