TECO Energy Announces Early Results of Debt Tender and Exchange Offers; Extends Early Participation Date and Expiration Date of Par-for-Par Exchange Offers

Business Wire, Dec 6, 2007

TAMPA, Fla. -- TECO Energy, Inc. (NYSE:TE) today announced early results for its previously announced debt tender offer and exchange offers and that it has extended the early participation date and the expiration date of the par-for-par exchange offers.

Early Results of the Tender Offer

As of 5:00 p.m., New York City time, December 5, 2007, the early tender date for TECO Energy's previously announced offer to purchase for cash any and all of the $300 million outstanding principal amount of its 7.50% notes due 2010 (CUSIP No. 872375AK6), approximately $294.2 million principal amount of notes had been validly tendered and not withdrawn. Notes validly tendered and not withdrawn prior to the early tender date, and accepted for payment, will have a settlement date of December 7, 2007.

The tender offer will expire at 5:00 p.m., New York City time, on December 19, 2007, unless extended. The terms and conditions of the tender offer are described in an offer to purchase dated November 20, 2007, and related letter of transmittal.

Notes validly tendered after the early tender date and on or before the expiration date, and accepted for payment, will have a settlement date two business days after the expiration of the tender offer. The applicable tender offer consideration will be determined at 2:00 p.m., New York City time, today by the lead dealer managers for the tender offer by reference to a fixed spread specified for such notes over the yield to maturity based on the bid-side price of the reference U.S. Treasury security, as set forth in the offer to purchase. Holders whose notes are purchased will be paid accrued and unpaid interest up to, but not including, the applicable settlement date. Holders of notes who validly tender their notes after the early tender date but on or before the expiration date may not withdraw their notes except in the limited circumstances described in the offer to purchase.

TECO Energy intends to fund the tender offer with a portion of the proceeds of the sale of TECO Transport, which, as previously announced, closed on December 5, 2007.

The information agent and depositary for the tender offer is Global Bondholder Services Corporation. The tender offer is made only by the offer to purchase and the related letter of transmittal, and the information in this news release is qualified by reference to such documents. Requests for copies of the offer to purchase and related letter of transmittal should be directed to Global Bondholder Services Corporation at (212) 430-3774 or (866) 857-2200 (toll-free).

Early Results of the Exchange Offers

As previously announced, in four separate exchange offers, TECO Energy and TECO Finance are offering eligible holders:

-- To exchange outstanding TECO Energy 7.20% notes due 2011 or
   TECO Energy 7.00% notes due 2012, for newly issued TECO Finance
   notes due 2017, subject to proration to the extent necessary to
   limit the aggregate principal amount of TECO Finance notes due
   2017 to $300 million (the "TECO Finance 2017 notes exchange
   offer"); or

   -- To exchange TECO Energy 7.20% notes due 2011, for a like
      principal amount of newly issued TECO Finance 7.20% notes due
      2011 (the "2011 par-for-par exchange offer"); and

   -- To exchange TECO Energy 7.00% notes due 2012, for a like
      principal amount of newly issued TECO Finance 7.00% notes due
      2012 (the "2012 par-for-par exchange offer"); and

-- To exchange outstanding TECO Energy 6.75% notes due 2015 for a
   like principal amount of newly issued TECO Finance 6.75% notes
   due 2015 (the "2015 par-for-par exchange offer").

As of 5:00 p.m., New York City time, December 5, 2007, the following principal amount of notes had been tendered in the exchange offers:

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TECO Energy notes accepted for exchange in the TECO Finance 2017 notes exchange offer will be subject to proration so that TECO Finance will only issue a maximum of $300 million aggregate principal amount of TECO Finance notes due 2017. Holders of TECO Energy notes due 2011 participating in the TECO Finance 2017 notes exchange offer will be given priority before holders of TECO Energy notes due 2012 may participate in such exchange offer. Holders participating in the TECO Finance 2017 notes exchange offer whose notes are not accepted, whether due to acceptance priority, proration or termination of such exchange offer, agree to participate in the applicable par-for-par exchange offer.

The applicable total exchange price for the TECO Energy notes due 2011 and 2012 tendered in the TECO Finance 2017 notes exchange offer is based on a fixed-spread pricing formula and will be calculated at 2:00 p.m., New York City time, on the second business day prior to the expiration of the TECO Finance 2017 notes exchange offer. TECO Energy notes due 2011, 2012 or 2015 tendered after 5:00 p.m., New York City time, on December 5, 2007 may not be withdrawn except in certain limited circumstances where additional withdrawal rights are required by law.