Tampa Electric accepts $278.5 million 6.875%, 6.375% notes tendered in exchange offer so far

By Angela McDaniels

Tacoma, Wash., Dec. 8 - Tampa Electric Co. had received tenders for $278,495,000 principal amount of notes in its exchange offer as of 5 p.m. ET on Dec. 7, thus satisfying the condition that it receive at least $250 million of notes by the early participation date.

Holders tendered $131,463,000 of the company's $250 million of 6.875% notes due 2012 and $147,032,000 of its $400 million of 6.375% notes due 2012, according to a company news release.

These notes have been accepted and will be purchased on Dec. 9.

Holders will receive $1,000 principal amount of new 5.4% notes due 2021 for each $1,000 principal amount of old notes exchanged. This includes a premium of $30 principal amount of new notes for each note tendered by the early participation date.

The company will also pay accrued interest.

The offer remains open until 11:59 p.m. ET on Dec. 14. The settlement date will be Dec. 15 for notes tendered after the early participation date.

On Dec. 1, the company amended the offer to increase the interest rate on the new notes from 5.1%, extend the early participation date from Nov. 30 and extend the expiration date from Dec. 8. The early participation date was previously extended from Nov. 22.

The offer began on Nov. 9 and is being made only to noteholders who are qualified institutional buyers, as defined by Rule 144A under the Securities Act, or who are not U.S. persons, as defined by Regulation S under the Securities Act.

The electric subsidiary of TECO Energy Inc. is based in Tampa, Fla.

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