Deal extends time for completion of TECO coal sale

TECO Energy (NYSE:TE) said early Dec. 24 that it and the company planning to buy its TECO Coal unit have agreed to extend the sale deadline until Feb. 20, 2015.

TECO Energy and Cambrian Coal Corp. said Dec. 24 that they have agreed to modify the terms of the Securities Purchase Agreement (SPA) that they had reached on Oct. 17 for the sale of TECO Coal. Cambrian Coal is part of the privately-held Booth Energy Group.

Under this amendment, the sales agreement is subject to termination by either party if the specified closing conditions are not met by Feb. 20, 2015, rather than Dec. 31, 2014, as originally specified.

“This agreement best positions us to execute our strategy to exit the coal business in as expeditious a manner as is reasonable, while still receiving fair value for TECO Coal,” said TECO Energy CEO John Ramil.

The specifics of the amendment were filed with the Securities and Exchange Commission (SEC) in the form of a Current Report on Form 8-K on this date.

“The Amendment also removes the restriction on the Company’s ability to be in contact with other potential purchasers,” according to the 8-K.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.