An investment group led by an affiliate of Greenstreet Equity Partners, a Miami-based private equity firm founded by Steven Green, the former US ambassador to Singapore, and Jeffrey Safchi
An investment group led by an affiliate of Greenstreet Equity Partners, a Miami-based private equity firm founded by Steven Green, the former US ambassador to Singapore, and Jeffrey Safchik, has agreed to acquire Teco Transport from Teco Energy for a purchase price of USD405m in cash. The net proceeds are expected to be between USD370m and USD380m.
‘This sale concludes the evaluation of strategic alternatives for Teco Transport which we announced earlier this year,’ says Teco Energy chairman and chief executive Sherrill Hudson. ‘It is the best alternative for Teco Energy’s shareholders, allowing us to accelerate our debt retirement plan, strengthen our balance sheet and focus on our utility businesses.
‘We hope this sale will accelerate improvement of Teco Energy’s credit ratings. It also puts Teco Transport in the hands of an investor able to focus on and deploy the future capital needed to grow this business.’
Teco Energy is the guarantor of three Teco Transport leases, and the parties have made various arrangements for dealing with these guarantees. The transaction is not conditional upon obtaining debt financing.
Morgan Stanley acted as Teco Energy’s financial adviser, while Skadden, Arps, Slate, Meagher & Flom provided legal counsel. AMA Capital Partners was financial adviser to Greenstreet Equity Partners, and Willkie Farr & Gallagher provided legal counsel.
Teco Energy is an integrated energy-related company with regulated utility businesses, complemented by a family of unregulated businesses. Its principal subsidiary, Tampa Electric Company, is a regulated utility with both electric and gas divisions, Tampa Electric and Peoples Gas System. Other subsidiaries are engaged in waterborne transportation, coal and synthetic fuel production, and electricity generation and distribution in Guatemala.
