By Paul Deckelman
New York, June 2 - TECO Energy Inc. sold $100 million of five-year floating-rate senior notes at par to yield three-month Libor plus 200 basis points, high-yield syndicate sources said.
The quickly shopped deal, which was not publicly announced beforehand, was brought to market by an underwriting syndicate led by joint book-running managers UBS Investment Bank, Citigroup Global Markets Inc. and Morgan Stanley. Co-managers on the deal were BNY Capital, BNP Paribas and SG Cowan.
The notes were sold in a Rule 144A/Regulation S transaction, with registration rights. They are non -callable for the first two years after issue, but for a make-whole call at 50 basis points over Treasuries.
TECO, a Tampa, Fla.-based power generating company, plans to use the proceeds of the bond deal to partially fund the retirement of the company's outstanding $380 million of 10½% notes due 2007 and its $200 million of 8½% trust preferred securities, along with cash from other sources.
The company's existing bonds are rated Ba2 by Moody's Investors Service and BB by Standard & Poor's.
| Issuer name: | TECO Energy Inc.
|
| Amount: | $100 million
|
| Security description: | Floating-rate senior notes
|
| Maturity: | May 1, 2010
|
| Bookrunners: | UBS Investment Bank, Citigroup Global Markets Inc., Morgan Stanley
|
| Co-managers: | BNY Capital, BNP Paribas, SG Cowan
|
| Coupon: | Libor plus 200 basis points
|
| Price: | Par
|
| Yield: | Libor plus 200 basis points
|
| Call schedule: | Non-callable for two years after issue, except for T+50 bps make-whole call. Callable after that at 102, 101 and finally, at par.
|
| Rule 144A/Regulation S | Yes
|
| Sold with reg. rights | Yes
|
| Trade date: | June 2
|
| Settlement date: | June 7 (T+3), flat
|
| Existing ratings: | Moody's: Ba2
|
| S&P: BB
|
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