TECO Energy Enters into Fourth Amendment of Agreement to Sell TECO Coal
April 20 2015 - 7:30AM
Business Wire
TECO Energy Inc. (NYSE:TE) today announced that on April 17,
2015, it entered into a fourth amendment of its agreement with
Cambrian Coal Corp., a member of the Booth Energy group, to modify
the terms of the Securities Purchase Agreement (SPA) dated as of
Oct. 17, 2014, related to the sale of TECO Coal. This fourth
amendment extends the closing date to June 5, 2015. The total sales
price remains $140 million including future contingent
consideration of $60 million if certain coal benchmark prices reach
certain levels over the next five years. The $80 million cash base
purchase price is subject to post-closing adjustments.
TECO Energy CEO John Ramil stated, “We remain committed to
exiting the coal business in the most effective way. We continue to
believe that working cooperatively with Cambrian and providing it
with additional time to work with its lending group to obtain
financing for the transaction is the preferred way to meet that
commitment. We are well positioned to exit the business in many
ways. The business is in discontinued operations, we have written
it down appropriately to reflect the transaction value, and we have
right-sized the operations for the current market conditions. We
will report first quarter results on April 28, and we look forward
to reporting on our utility businesses, with the expected good
growth in our Florida operations and positive earnings contribution
from New Mexico Gas.”
TECO Energy Inc. (NYSE:TE) is an energy-related holding company
with regulated electric and gas utilities in Florida and New
Mexico. Tampa Electric serves more than 700,000 customers in West
Central Florida; Peoples Gas System serves more than 350,000
customers across Florida; and New Mexico Gas Co. serves more than
510,000 customers across New Mexico. Other TECO Energy subsidiaries
include TECO Coal, which owns and operates coal-production
facilities in Kentucky, Tennessee and Virginia.
Note: This press release may be deemed to contain
forward-looking statements, which are subject to the inherent
uncertainties in predicting future results and conditions.
Actual results may differ materially from those forecasted. The
forecasted results are based on the company’s current expectations
and assumptions, and the company does not undertake to update that
information or any other information contained in this press
release, except as may be required by law. Factors that could
impact actual results include: the ability of the purchaser of TECO
Coal to obtain suitable financing, for other closing conditions to
be satisfied or waived, and for TECO Energy to successfully close
the sale transaction. Additional information is contained under
“Risk Factors” in TECO Energy, Inc.’s Annual Report on Form 10-K
for the period ended Dec. 31, 2014.
TECO Energy Inc.News Media:Cherie Jacobs, 813-228-4945orInvestor
Relations:Mark Kane, 813-228-1772Internet: www.tecoenergy.com
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