TECO Energy selling 15.5 million shares

TAMPA — TECO Energy Inc. announced plans to offer 15.5 million shares of its common stock. The company will use the proceeds of to pay for its $950 million purchase of Albuquerque, N.M.-based New Mexico Gas Co. and for other corporate purposes.

The Tampa-based energy holding company plans to market the stock through underwriters led by Morgan Stanley, Citigroup and JP Morgan as joint book-running managers. TECO Energy will also give the underwriters a 30-day option to purchase up to 2.33 million additional shares of common stock.

As part of the purchase agreement, TECO Energy has agreed to a settlement with the New Mexico Public Regulations Commission freezing energy rates until the end of 2017. The agreement also obligated it to own the gas company for at least a decade. The acquisition also calls for TECO Energy to assume $200 million worth of New Mexico Gas's debit.

New Mexico Gas serves 509,000, primarily residential, customers throughout New Mexico.