TECO Energy Subsidiary Enters into Letter of Intent with New Buyer for TECO Coal
June 08 2015 - 8:00AM
Business Wire
A subsidiary of TECO Energy, Inc. (NYSE: TE) has entered into a
non-binding letter of intent with a new buyer for the sale of all
of its interest in TECO Coal LLC.
The sales agreement with Kentucky-based Cambrian Coal Corp. did
not close on June 5, 2015, because the buyer could not satisfy the
conditions precedent to closing, and that agreement is now
terminable by either party. The new buyer does not expect to
require external financing.
“We believe that moving forward with this new buyer will provide
us the best opportunity to exit the coal business for an
appropriate value in the current coal markets,” said John Ramil,
president and chief executive officer of TECO Energy. “The new
buyer has indicated a strong interest in purchasing TECO Coal and
has the financial capability to do so. We look forward to
successfully completing this transaction as quickly as
possible.”
The transaction would be subject to the negotiation of a
definitive agreement and obtaining third-party consents, and the
parties currently expect to close on the sale on or before July
3.
TECO Coal segment has been classified as discontinued operations
since the third quarter of 2014.
Note: This press release contains 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 forward-looking statements 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
TECO Energy’s ability to enter into a definitive agreement and
successfully close the sale of TECO Coal, either at all or within
the currently anticipated time frame. There can be no assurance
that a definitive agreement will be reached. 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. (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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150608005482/en/
TECO Energy, Inc.Media Contact:Cherie Jacobs,
813-228-4945orInvestor Relations Contact:Mark Kane,
813-228-1772
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