TXNM Energy Announces Q2 2026 Convertible Notes Option

TXNM Energy ( (TXNM) ) has issued an announcement.

TXNM Energy has informed holders of its 5.75% Junior Subordinated Convertible Notes due 2054 that the notes will be convertible at the holders’ option between April 1 and June 30, 2026, at a rate equivalent to a conversion price of about $44.37 per share. Investors who convert in this Second Quarter 2026 Conversion Period will receive an equivalent principal amount of new 5.75% non-convertible junior subordinated notes due 2054, plus shares of common stock only to the extent the conversion value exceeds the principal, with no cash paid other than for fractional shares.

The company warned that the new 5.75% non-convertible junior subordinated notes may be less liquid and could trade below par, particularly when compared with its higher‑coupon 7.000% Junior Subordinated Notes due 2056 issued on December 10, 2025. TXNM Energy also reminded investors that, under a previously announced May 18, 2025 merger agreement with a Blackstone Infrastructure affiliate, a successful closing at $61.25 per share would trigger a make-whole fundamental change on the convertible notes, giving holders a separate, time-limited right to convert into cash based on the merger price, although completion of the merger remains subject to regulatory and other customary conditions.

The most recent analyst rating on (TXNM) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on TXNM Energy stock, see the TXNM Stock Forecast page.

Spark’s Take on TXNM Stock

According to Spark, TipRanks’ AI Analyst, TXNM is a Neutral.

The score is held back primarily by weak cash flow quality (structurally negative free cash flow) and meaningful leverage, despite improved 2024 profitability. Technicals are mildly supportive with price above key moving averages and neutral momentum, but a high P/E and only moderate dividend yield weigh on valuation.

To see Spark’s full report on TXNM stock, click here.

More about TXNM Energy

TXNM Energy, Inc. is an energy-sector company whose securities include 5.75% junior subordinated convertible notes due 2054 and other long-dated junior subordinated debt instruments. Its investor base includes holders of these hybrid debt-equity securities, and the company is the target of a planned cash acquisition by an affiliate of Blackstone Infrastructure Partners, which would take it private as a wholly owned subsidiary.

Average Trading Volume: 1,182,698

Technical Sentiment Signal: Buy

Current Market Cap: $6.39B

Learn more about TXNM stock on TipRanks’ Stock Analysis page.