TECO Energy, Finance push back early deadline in tender for $300 million of four notes series

By Jennifer Chiou

New York, March 4 - TECO Energy Inc. and its wholly owned subsidiary, TECO Finance, Inc., announced the extension of the early tender deadline in their cash offers for up to $300 million of four separate series of debt securities.

The early deadline will now coincide with the final tender deadline of 11:59 p.m. ET on March 19.

The offers began on Feb. 22. And, the original early deadline was at 5 p.m. ET on March 3.

As already reported, the aim of the tender offers is to lengthen the maturity profile of the securities.

The offers are to be funded by a registered offering of TECO Finance notes, and they are divided into two offers: an any-and-all offer and a maximum tender offer.

Affected notes include:

• Any and all of TECO Energy's $191,729,000 of 7.2% notes due 2011 (Cusip 872375AC4) and its $100,204,000 of 7% notes due 2012 (Cusip: 872375AG5); as well as

• Up to a to-be-determined amount of TECO Finance's $171,827,000 of 7.2% notes due 2011 (Cusips 87875UAA0 and 87875UAD4) and its $236.24 million of 7% notes due 2012 (Cusip 87875UAB8).

As of the original early tender deadline of 5 p.m. ET on March 3, holders had tendered $40,452,000 of TECO Energy's 7.2% notes and $25,737,000 of TECO Energy's 7% notes in addition to $156,724,000 of TECO Finance's 7.2% notes and $135,143,000 of TECO Finance's 7% notes.

For TECO Finance's tender offer, the maximum amount of 7.2% notes to be accepted will be the lesser of (a) the difference between $300 million and the amount of tendered TECO Energy notes and (b) the difference between $200 million and the amount of TECO Energy's 7.2% notes that are validly tendered and accepted for purchase.

As for TECO Finance's 7% notes, the tender cap will be equal to $300 million minus the amount of the accepted tenders for the other three series of notes.

Notes tendered in excess of the cap will be accepted on a pro rata basis.

For each $1,000 principal amount, holders will receive a total tender offer consideration of $1,098.20 for TECO Energy's and TECO Finance's 7.2% notes and $1,132.42 for TECO Energy's and TECO Finance's 7% notes.

With the extension, those who tender prior to the deadline will receive the $30.00 early tender premium that is included in the payouts. Holders will also receive accrued interest, which is also included in the total consideration above, assuming a March 22 settlement date.

The offers are contingent on the planned notes offering.

Citigroup Global Markets Inc. (800 558-3745) and J.P. Morgan Securities Inc. (866 834-4666 or call collect 212 834-3424) are the dealer managers. The information agent and depositary is Global Bondholders Services Corp. (866 857-2200 or call collect 212 430-3774).

TECO is a Tampa, Fla.-based company engaged in diversified energy-related operations.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.