TECO Energy Subsidiary Enters into Letter of Intent with New Buyer for TECO Coal

A subsidiary of TECO Energy, Inc. TE has entered into a non-binding letter of intent with a new buyer for the sale of all of its interest in TECO Coal LLC. The sales agreement with Kentucky-based Cambrian Coal Corp. did not close on June 5, 2015, because the buyer could not satisfy the conditions precedent to closing, and that agreement is now terminable by either party. The new buyer does not expect to require external financing. "We believe that moving forward with this new buyer will provide us the best opportunity to exit the coal business for an appropriate value in the current coal markets," said John Ramil, president and chief executive officer of TECO Energy. "The new buyer has indicated a strong interest in purchasing TECO Coal and has the financial capability to do so. We look forward to successfully completing this transaction as quickly as possible." The transaction would be subject to the negotiation of a definitive agreement and obtaining third-party consents, and the parties currently expect to close on the sale on or before July 3. TECO Coal segment has been classified as discontinued operations since the third quarter of 2014.