TECO Energy announces sale of $400 million of mandatorily convertible securities
TAMPA, January 9, 2002
TECO Energy, Inc. (NYSE: TE) announced today that it has entered into an underwriting agreement with Goldman Sachs & Co. for the sale of 16 million of mandatorily convertible securities in the form of 9.5 percent equity security units at $25 per unit. TECO Energy has also granted the underwriter an option to purchase up to an additional 2.4 million equity security units to cover over-allotments, if any. Each equity security unit will consist of $25 in principal amount of a trust preferred security of TECO Capital Trust II, a Delaware business trust formed by TECO Energy, with a stated liquidation amount of $25 and a contract to purchase shares of common stock of TECO Energy in February 2005 at a price per share of between $26.29 and $30.10 based on the market price at the time. The net proceeds of the offering will be used to fund capital expenditures, for working capital requirements and for general corporate purposes and pending such use, to repay short-term indebtedness.
TECO Energy is a diversified energy-related holding company headquartered in Tampa. Its principal businesses are Tampa Electric, Peoples Gas System, TECO Power Services, TECO Transport, TECO Coal, TECO Coalbed Methane and TECO Solutions.
This press release does not constitute an offer to sell or solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from Goldman Sachs & Co., One New York Plaza, New York, NY 10004. An electronic copy of the prospectus will be available on the Securities and Exchange Commission web site at www.sec.gov.