SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
JUNE 9, 2003
TECO ENERGY, INC.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
FLORIDA 1-8180 59-2052286
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(STATE OR OTHER JURISDICTION (COMMISSION FILE (IRS EMPLOYER
OF INCORPORATION) NUMBER) IDENTIFICATION NO.)
702 NORTH FRANKLIN STREET, TAMPA FLORIDA 33602
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (813) 228-4111
ITEM 5. OTHER EVENTS
See the press release dated June 9, 2003, filed as Exhibit 99.1 hereto and
incorporated herein by reference, announcing that TECO Energy plans this week to
offer unsecured notes to the public under the company's existing shelf
registration statement through underwriters Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Citigroup Global Markets Inc., Morgan Stanley & Co.
Incorporated and J.P. Morgan Securities Inc.
The prospectus related to the offering describes the company's financial
covenants under its existing financing arrangements. As reported in the
company's Quarterly Report on Form 10-Q for the three months ended March 31,
2003, those covenants include those under TECO Energy's 10.5% Notes due 2007
issued in November 2002 that limit the ability of the company to incur
additional liens and require the company to achieve certain interest coverage
levels in order to pay dividends, make distributions or certain investments, or
issue additional indebtedness. These covenants became effective as of April 21,
2003, with Moody's downgrade of TECO Energy's senior unsecured debt rating to
Ba1 from Baa2. Upon further review and interpretation of the required covenant
calculations, the company has adjusted its March 31, 2003 calculations under the
applicable agreement. The limitation on restricted payments restricts TECO
Energy from paying dividends or making distributions or certain investments
unless there is sufficient cumulative operating cash flow in excess of 1.7 times
interest coverage, each as defined in the agreement, to make contemplated
dividend payments, distributions or investments. Under the agreement, operating
cash flow, interest coverage and restricted payments are to be determined on a
cumulative basis from the issuance of the 10.5% Notes in November 2002. At March
31, 2003, $74.5 million was accumulated and available for future restricted
payments, representing a one quarter accumulation. The company is not permitted,
with certain exceptions as provided in the agreement, to create any lien upon
any of its property in excess of 5% of consolidated net tangible assets, as
defined in the agreement, without equally and ratably securing the 10.5% Notes.
As of March 31, 2003, this limitation would apply to certain liens exceeding
$224.3 million. The company's operating cash flow to interest coverage ratio for
the immediate preceding four quarters must exceed a ratio of 2.0 times for the
company to be able to issue additional indebtedness, with certain exceptions as
provided in the agreement. As of March 31, 2003, the company's operating cash
flow to interest coverage for the immediate preceding four quarters, with pro
forma adjustments as provided in the agreement, was 3.3 times.
Tampa Electric Company has agreed with the Florida Public Service
Commission that, as a result of Bayside Unit 1 entering service on April 24,
2003, it will recognize $25 million pre-tax accelerated depreciation on the
coal-fired Gannon Station units over the full year 2003, which will require
Tampa Electric Company to recognize two quarters of the annual amount in the
second quarter of 2003, with the remaining recognized ratably in the third and
fourth quarters.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
99.1 Press release dated June 9, 2003 announcing that TECO Energy plans to offer
unsecured notes to the public through underwriters Merrill Lynch, Pierce, Fenner
& Smith Incorporated, Citigroup Global Markets Inc., Morgan Stanley & Co.
Incorporated and J.P. Morgan Securities Inc.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TECO ENERGY, INC.
(Registrant)
Dated: June 9, 2003 By:/s/ G. L. GILLETTE
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G. L. GILLETTE
Senior Vice President - Finance
and Chief Financial Officer
(Principal Financial Officer)
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INDEX TO EXHIBITS
Exhibit No. Description of Exhibits
99.1 Press release dated June 9, 2003 announcing that TECO Energy
plans to offer unsecured notes to the public through
underwriters Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Citigroup Global Markets Inc., Morgan Stanley &
Co. Incorporated and J.P. Morgan Securities Inc.
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