PNM 12.31.2011 EX 10.2










Exhibit 10.2
FIRST AMENDMENT TO CREDIT AGREEMENT
THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is entered into as of January 18, 2012 among PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation (the "Borrower"), the Lenders party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent for the Lenders (in such capacity, the "Administrative Agent") and as Swing Line Lender.  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Credit Agreement (as defined below).
R E C I T A L S
WHEREAS, the Borrower, the Lenders party thereto, the Administrative Agent and the Swing Line Lender are parties to that certain Credit Agreement, dated as of October 31, 2011 (as amended or modified from time to time, the "Credit Agreement");
WHEREAS, the Borrower has requested a modification to the Credit Agreement as described below; and
WHEREAS, the Lenders party hereto and the Swing Line Lender are willing to agree to such modification, subject to the terms set forth herein as more fully set forth below.
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
A G R E E M E N T
1.    Amendment to Credit Agreement.
Clause (c) of the definition of “Interest Payment Date” in Section 1.1 of the Credit Agreement is amended and restated in its entirety to read as follows:
(c) as to LIBOR Market Index Rate Swing Line Loans, on the third Business Day after the end of each calendar month and the Maturity Date.
2.    Effectiveness; Conditions Precedent.
This Amendment shall be effective on the date on which the Administrative Agent shall have received copies of this Amendment duly executed by the Borrower, the Required Lenders and the Swing Line Lender.
3.    Ratification of Credit Agreement.  The term "Credit Agreement" as used in each of the Credit Documents shall hereafter mean the Credit Agreement as amended and modified by this Amendment.  Except as herein specifically agreed, the Credit Agreement, as amended by this Amendment, is hereby ratified and confirmed and shall remain in full force and effect according to its terms.  Each party hereto acknowledges and consents to the modifications set forth herein and agrees that, other than as explicitly set forth in Section 1 above, this Amendment does not impair, reduce or limit any of its obligations under the Credit Documents (including, without limitation, the indemnity obligations set forth therein) and that, after the date hereof, this Amendment shall constitute a Credit Document.









4.    Authority/Enforceability.  Each party hereto represents and warrants as follows:
(a)    It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.
(b)    This Amendment has been duly executed and delivered by such Person and constitutes such Person's legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors' rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).
(c)    No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment.
5.    Representations and Warranties.  The Borrower represents and warrants to the Lenders that (a) the representations and warranties of the Borrower set forth in Section 6 of the Credit Agreement are true and correct as of the date hereof, unless they specifically refer to an earlier date, (b) no event has occurred and is continuing which constitutes a Default or an Event of Default, and (c) it has no claims, counterclaims, offsets, credits or defenses to its obligations under the Credit Documents, or to the extent it has any, they are hereby released in consideration of the Lenders party hereto entering into this Amendment.
6.    No Conflicts.  Neither the execution and delivery of this Amendment, nor the consummation of the transactions contemplated herein, nor performance of and compliance with the terms and provisions hereof by the Borrower will (a) violate, contravene or conflict with any provision of its respective articles or certificate of incorporation, bylaws or other organizational or governing document, (b) violate, contravene or conflict with any law, rule, regulation, order, writ, judgment, injunction, decree or permit applicable to the Borrower, (c) violate, contravene or conflict with contractual provisions of, or cause an event of default under, any indenture, loan agreement, mortgage, deed of trust, contract or other agreement or instrument to which the Borrower is a party or by which it or its properties may be bound or (d) result in or require the creation of any Lien upon or with respect to the Borrower's properties.
7.    Counterparts/Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of executed counterparts by telecopy or by electronic format (pdf) shall be effective as an original.
8.    GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
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Each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.
BORROWER:


PUBLIC SERVICE COMPANY OF NEW MEXICO,
a New Mexico corporation
By:    /s/ Terry Horn                                                         
Name:    Terry Horn                                                              
Title:    Vice President & Treasurer                            











ADMINISTRATIVE AGENT:


WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent and as a Lender
By:    /s/ Yann Blindert                                           
Name:    Yann Blindert                                                    
Title:    Director                                                             








SWING LINE LENDER:


WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Swing Line Lender
By:    /s/ Yann Blindert                                            
Name:    Yann Blindert                                                     
Title:    Director                                                              











LENDERS:


Union Bank, N.A.                
[Name of Lender]
By:    /s/ Efrain Soto                                                  
Name:    Efrain Soto                                                       
Title:    Vice President                                                  









CITIBANK, N.A.                


By:    /s/ Amit Vasani                                                 
Name:    Amit Vasani                                                      
Title:    Vice President                                                   









JPMORGAN CHASE BANK, N.A.                


By:    /s/ Helen D. Davis                                       
Name:    Helen D. Davis                                                
Title:    Vice President                                                  









SUNTRUST BANK                


By:    /s/ Andrew Johnson                                       
Name:    Andrew Johnson                                           
Title:    Director                                                             









MORGAN STANLEY BANK, N.A.                


By:    /s/ John Durland                                           
Name:    John Durland                                                    
Title:    Authorized Signatory                                   









KEYBANK NATIONAL ASSOCIATION    


By:    /s/ Karen D. Smith                                        
Name:    Karen D. Smith                                                 
Title:    Senior Vice President                                    











ROYAL BANK OF CANADA


By:    /s/ William J. Caggiano                                
Name:    William J. Caggiano                                     
Title:    Authorized Signatory                                   









US Bank, National Association


By:    /s/ Holland H. Williams                              
Name:    Holland H. Williams                                   
Title:    AVP & Portfolio Manager                      









THE BANK OF NEW YORK MELLON


By:    /s/ Mark W. Rogers                                    
Name:    Mark W. Rogers                                         
Title:    Vice President                                                









Bank of Albuquerque


By:    /s/ John M. Valentine                                  
Name:    John M. Valentine                                       
Title:    Senior Vice President