TECO Energy Amends Agreement To Sell TECO Coal - Quick Facts

(RTTNews) - TECO Energy Inc. (TE) announced that it has entered into an agreement with Cambrian Coal Corporation to modify the terms of the Securities Purchase Agreement or SPA dated as of October 17, 2014, related to the sale of TECO Coal.

As per the amendment, the SPA is subject to termination by either party if the specified closing conditions are not met by February 20, 2015, rather than Dec. 31, 2014, as originally specified.

TECO Energy CEO John Ramil stated, "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."

In late-October, TECO Energy said it signed an agreement to sell its coal mining subsidiary, TECO Coal and its subsidiaries, to Cambrian Coal Corp., a member of the Booth Energy Group, for a total sales price of $170 million. The total sales price included future contingent consideration of $50 million if certain coal benchmark prices reach certain levels over the next five years. The $120 million cash base purchase price was subject to post-closing adjustments.