 |
December 12, 2007 |
|
|
|
 |
TECO ENERGY: Completes US$405-Million Sale of TECO Transport TECO Energy has closed the sale of TECO Transport Corporation to an investment group led by an affiliate of Greenstreet Equity Partners L.P., for US$405 million, subject to the final adjustment of net working capital. Net proceeds from the sale, taking into consideration estimated transaction-related costs and state and federal taxes, are expected to be approximately US$375 million. TECO Energy expects US$235 million and US$245 million, excluding previously recognized transaction costs. "This outcome is a very positive event for TECO Energy," said Sherrill Hudson, chairman and CEO. "It allows us to continue our debt retirement plans, including the cash tender offer. These actions will strengthen our balance sheet and solidify our focus on TECO Energy's utility businesses. In addition, we hope the completion of this sale will continue to accelerate improvement of TECO Energy's credit ratings." "Our thanks to the entire TECO Transport team for their many years of dedicated service as part of the TECO Energy family of companies," John Ramil, president and COO, said. "Their commitment and professionalism have never wavered, especially during the past few months of transition. We wish them much success as they enter this new era in their long history as a world-class waterborne transportation business." TECO Energy was the guarantor of three TECO Transport vessel leases. The first lease will terminate on Dec. 30, 2007, and the agreement with the purchaser requires it to cause TECO Transport to make the US$44.6 million termination payment on that date. Releases with respect to the two other guaranties were obtained at closing, and payments for those releases were included in the net proceeds. About Greenstreet Equity Partners Headquartetered in Miami, Florida, Greenstreet Equity Partners L.P., is a private equity firm founded by Steven Green, the former U.S. Ambassador to Singapore, and Jeffrey Safchik. About TECO Energy Headquartered in Tampa, Florida, TECO Energy Inc. (NYSE:TE) -- http://www.tecoenergy.com/ -- is an integrated energy-related holding company with regulated utility businesses, complemented by a family of unregulated businesses. Its principal subsidiary, Tampa Electric Company, is a regulated utility with both electric and gas divisions (Tampa Electric and Peoples Gas System). Other subsidiaries are engaged in waterborne transportation, coal and synthetic fuel production and electric generation and distribution in Guatemala. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2007, Fitch Ratings has assigned these ratings to TECO Finance, Inc., a wholly owned finance subsidiary of TECO Energy, Inc.: -- Issuer Default Rating 'BB+'; -- Senior unsecured 'BB+'. |
|
|
||
|
Today's Top Stories have been selected from the Troubled Company Reporter - Latin America. To receive the Full TCR-LA please CLICK HERE.
