Tampa Electric signs $736 million contribution agreement with unit

By William Gullotti

Buffalo, N.Y., Jan. 5 – Tampa Electric Co. entered a $736 million 364-day contribution agreement with wholly owned subsidiary Peoples Gas System, Inc. (PGSI) on Jan. 1, according to an 8-K filing with the Securities and Exchange Commission.

The agreement, which matures Dec. 29, 2023, consists of a $670 million term loan and a $66 million revolver. Tampa Electric further agreed to make certain additional revolving loans available to PGSI for up to $300 million.

Both the term loan and revolver are connected to Tampa Electric’s existing facilities with Wells Fargo Bank, NA as administrative agent.

Interest for the term loan and revolver will be calculated based upon PGSI’s proportionate amount of interest and related costs incurred with respect to the aforementioned facilities.

Per the terms, Tampa Electric contributed the assets and liabilities of its natural gas division to PGSI and PGSI accepted the assets and assumed the liabilities. PGSI agrees to reimburse Tampa Electric for all interest, prepayment premiums and costs incurred by Tampa Electric in connection with the loans.

Following the completion of the transactions, the former natural gas division of Tampa Electric will be operated by PGSI as a separate, indirect subsidiary of TECO Energy, Inc.

The company is a Tampa, Fla.-based subsidiary of TECO Energy, Inc., an energy-related holding company.

© 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.