TECO Energy completes note offering
TAMPA, June 16, 2003
TECO Energy, Inc. (NYSE: TE) announced the completion of its sale of $300 million of senior unsecured notes on June 13, 2003. The notes were sold in a one-day offering, and the transaction was upsized from $200 million to $300 million in response to strong investor demand. The notes, which have a coupon of 7.5%, were sold at 98.932% of par to yield 7.7%. Proceeds from the sale of these notes are expected to be used to reduce short-term debt and for general corporate purposes.
Senior Vice President Finance and CFO Gordon Gillette said, “This was an excellent opportunity for us to access the capital markets during a period of favorable interest rates, and we experienced strong investor demand in both the high grade and high yield markets.” “The proceeds from the sale of these notes improve our cash and liquidity position, and will provide TECO Energy with financial flexibility to manage the timing of any potential asset sales,” Gillette added.
Underwriters for the offering were Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., and Morgan Stanley & Co. Incorporated as joint book-running lead managers and J.P. Morgan Securities Inc. as joint lead manager.
TECO Energy, Inc. (NYSE: TE) is a diversified energy-related holding company based in Tampa. Its principal businesses are Tampa Electric, Peoples Gas, TECO Power Services, TECO Transport, TECO Coal and TECO Solutions.