TECO Energy Announces Agreements to Sell Remaining Investments in International Power Plants For $227.5M
TECO Energy (NYSE: TE) today announced that its international power subsidiary, TECO Guatemala, has entered into separate agreements to sell all of the equity interests in the Alborada and San José power stations and related solid fuel handling and port facilities in Guatemala for a total purchase price of $227.5 million in cash. The purchaser of the Alborada Power Station is Sur Electrica Holding Ltd. (SUR). The purchaser of the San José Power Stations and related solid fuel handling and port facilities is Renewable Energy Investments Guatemala Ltd. (REIN), a wholly-owned subsidiary of SUR. SUR and REIN are international companies organized under the laws of the Commonwealth of the Bahamas.
The sale of the Alborada Power Station closed on Sept. 27, 2012. Due to certain preferential rights held by a third party to purchase the equity interests in the San José Power Station and related port facilities, the ultimate buyer of those interests could change and the closing on the sale of these interests could occur as late as March 2013.
After closing the sales, TECO Energy will utilize the net cash proceeds of approximately $223 million to repay $25 million of San José Power Station project debt, and currently expects to apply the remaining proceeds in a balanced fashion to repurchase common stock and reduce TECO Energy parent debt.
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