TECO Energy completes common stock offering, including over-allotment shares
TAMPA, June 18, 2002
Net proceeds of $346 million satisfy expected equity needs for this business cycle
TECO Energy (NYSE:TE) today announced that it completed its public offering of a total of 15.525 million new common shares. This included the initial offering of 13.5 million shares which was completed on June 10, 2002, and 2.025 million over-allotment shares, which the underwriters exercised their option to purchase.
All of the shares in the offering, including the over-allotment, were sold to the public at a price of $23.00 per share, the price established in connection with the initial sale. Proceeds from the offering and the over-allotment totaled approximately $346 million net of underwriting discounts and commissions.
Chairman and CEO Bob Fagan said, “This offering completes our anticipated equity raising needs for this business cycle, which includes the construction of four major power plants at TECO Power Services and repowering construction at Tampa Electric. Our balance of regulated utility businesses and unregulated companies earning high returns, and producing strong cash flows, as well as our consistent, growing dividend were clearly attractive to investors.”
Fagan added that the company was particularly pleased with the fact that even during a period of market uncertainty, TECO Energy’s message was well received by the investment community.
“The exercise of the over-allotment indicates a strong demand for TECO Energy stock,” added Fagan.
Credit Suisse First Boston and UBS Warburg were the joint lead managers. Salomon Smith Barney, CIBC World Markets, Robert W. Baird & Co. and Edward D. Jones & Co., L.P. acted as co-managers in the transaction.
An electronic copy of the final prospectus is available on the Securities and Exchange Commission's Web site at www.sec.gov.
TECO Energy (NYSE: TE) is a diversified, energy-related holding company headquartered in Tampa. Its common stock is included in the S&P 500 Index. The company's principal businesses are Tampa Electric, Peoples Gas System, TECO Power Services, TECO Transport, TECO Coal, TECO Coalbed Methane, and TECO Solutions.
Note: This press release contains forward-looking statements, which are subject to the inherent uncertainties in predicting future results and conditions. Certain factors that could cause actual results to differ materially from those projected in these forward-looking statements include the unanticipated need for additional equity capital arising from lower than expected cash flow or higher than projected capital requirements and the following: general economic conditions, particularly those in Tampa Electric’s service area affecting energy sales; weather variations affecting energy sales and operating costs; potential competitive changes in the electric and gas industries, particularly in the area of retail competition; regulatory actions affecting Tampa Electric, Peoples Gas System or TECO Power Services; commodity price changes affecting the competitive positions of Tampa Electric and Peoples Gas System, as well as the margins at TECO Coalbed Methane and TECO Coal; energy price changes affecting TPS’ merchant plants; changes in and compliance with environmental regulations that may impose additional costs or curtail some activities; TPS’ ability to successfully construct, finance and operate its projects on schedule and within budget; TPS’ ability to obtain financing for its Dell and McAdams projects; TECO Energy’s ability to find and successfully implement attractive investments in unregulated businesses; TPS’ ability to sell the output of the merchant plants operating or under construction at volumes and rates to recover the investment; the ability of TECO Energy’s subsidiaries to operate equipment without undue accidents, breakdowns or failures; interest rates and other factors that could impact TECO Energy’s ability to obtain access to sufficient capital on satisfactory terms; and TECO Coal’s ability to successfully operate its synthetic fuel production facilities in a manner qualifying for Section 29 federal income tax credits, which could be impacted by changes in law, regulation or administration. Some of these factors and others are discussed more fully under “Investment Considerations” in the company’s Annual Report on Form 10-K for the year ended December 31, 2001.