TECO Energy subsidiary extends $200 million bank facility to 2018

By Toni Weeks

San Luis Obispo, Calif., Dec. 18 - TECO Energy, Inc. wholly owned subsidiary TECO Finance, Inc. amended and restated its $200 million bank credit facility on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The amendment extends the facility's maturity date to Dec. 17, 2018 from Oct. 25, 2016 and makes other technical changes.

TECO Energy is the guarantor for the facility.

Also on Tuesday, TECO Energy entered into a $125 million bank credit facility in connection with its pending acquisition of New Mexico Gas Intermediate, Inc., the parent company of New Mexico Gas Co. (NMGC).

TECO is the initial party to the credit agreement and has entered into it solely with the intent of it being assigned to and assumed by NMGC upon closing of the acquisition.

The credit agreement matures Dec. 17, 2018 and may be increased by up to $75 million with lender agreement. The agreement also includes a $40 million letter-of-credit facility.

Borrowings will bear interest at one-month Libor plus 77.5 basis points to 165 bps, with the exact margin based on the company's credit ratings. There is also a facility fee of 10 bps to 35 bps, also based on ratings.

JPMorgan Chase Bank is the administrative agent, and J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding, Inc. are the joint lead arrangers and joint bookrunners for both facilities.

TECO Energy is a Tampa, Fla.-based energy-related holding company.

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