TECO Energy says 60.2% of Aces tendered in exchange

New York, Aug. 25 - TECO Energy Inc. said it received tenders of 10.756 million units or 60.2% of its 17.865 million 9.5% equity security units in the Adjustable Conversion-rate Equity Security (Aces) structure.

TECO's offer to settle the units early expired at midnight ET on Aug. 24.

Holders will receive 0.9509 shares of common stock and $1.39 in cash per unit. In total TECO will issue 10.228 million shares and pay $14.9 million.

Following the offer 7.209 million units remain outstanding.

TECO announced the exchange on July 28.

TECO originally issued 17.965 million of the units in January 2002 at par of $25, raising $459 million in cash. Each unit consists of a forward purchase contract requiring the holder to buy TECO common stock on Jan. 15, 2005 and a trust preferred security securing the purchase obligation. The exchange will result in early settlement of the purchase contract and as a result the trust preferreds will no longer be outstanding.

At maturity, the convertibles will be exchanged for 0.83056 or 0.95274 shares, depending on the stock price at the time.

Merrill Lynch & Co. (888 654-8637) and J.P. Morgan Securities Inc. (800 261-5767) are co-lead dealer managers, Morrow & Co. is the information agent (800 607-0088, banks and brokerage firms call 800 654-2468) and the Bank of New York is the exchange agent.

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