Issuer Free Writing Prospectus
Filed Pursuant to Rule 433
Registration Statement No. 333-195979
August 6, 2015
TERM SHEET
PUBLIC SERVICE COMPANY OF NEW MEXICO
3.850% SENIOR UNSECURED NOTES DUE 2025
| Issuer: | Public Service Company of New Mexico | |
| Expected Ratings (Moody’s/S&P)*: | Baa2/BBB (Outlook: Stable/Positive) | |
| Principal Amount: | $250,000,000 | |
| Security Type: | Senior Unsecured Notes | |
| Legal Format: | SEC Registered | |
| Trade Date: | August 6, 2015 | |
| Settlement Date: | August 11, 2015 | |
| Maturity Date: | August 1, 2025 | |
| Issue Price: | 99.722% of principal amount | |
| Coupon: | 3.850% | |
| Benchmark Treasury: | 2.125% due May 15, 2025 | |
| Benchmark Treasury Yield: | 2.234% | |
| Spread to Benchmark Treasury: | +165 basis points | |
| Re-offer Yield: | 3.884% | |
| Interest Payment Dates: | Semi-annually on February 1 and August 1, commencing on February 1, 2016 | |
| Redemption Provisions: | ||
| Make-whole call: | Until May 1, 2025, at a make whole premium using a discount rate of Treasury Rate plus 25 basis points | |
| Par call: | On or after May 1, 2025, at par | |
| Denominations: | $1,000 and integral multiples thereto | |
| CUSIP: | 744542AC5 | |
| ISIN: | US744542AC53 | |
| Joint Bookrunners: | J.P. Morgan Securities LLC KeyBanc Capital Markets Inc. Mitsubishi UFJ Securities (USA), Inc. RBC Capital Markets, LLC | |
| Co-Managers: | Citigroup Global Markets Inc. Morgan Stanley & Co. LLC SunTrust Robinson Humphrey, Inc. U.S. Bancorp Investments, Inc. | |
The issuer has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for this offering. Before you invest, you should read the prospectus for this offering in that registration statement, and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by searching the SEC online database (EDGAR®) at www.sec.gov. Alternatively, you may obtain a copy of the prospectus from J.P. Morgan Securities LLC by calling collect at 1-212-834-4533 or from Mitsubishi UFJ Securities (USA), Inc. by calling toll free at 1-877-649-6848.
| * | Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |