HILLSBOROUGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY, FLA. $20 MILLION POLLUTION CONTROL REVENUE BONDS, SERIES 1993 RATED DUFF 1+/'AA-'
CHICAGO, June 21 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a Duff 1+/`AA-' (One-Plus/Double-A-Minus) rating to Hillsborough County Industrial Development Authority's (Florida) proposed offering of $20 million of pollution control revenue bonds, Series 1993 (Tampa Electric Company project). Proceeds will be used to refinance a portion of the cost of sewage and solid waste disposal facilities at the Big Bend and F.J. Gannon stations. The bonds initially will bear interest at variable rates and will continue to do so until conversion to another interest rate mode. The tender agent for the bonds is required to purchase bonds, and the registered owners are required to tender such bonds upon the occurrence of various interest rate reset events and under certain other specific circumstances. The bonds are indirect obligations of Tampa Electric, with principal and interest payable solely from proceeds under a loan agreement with Tampa Electric. Tampa Electric has a conservative capital structure, good earnings quality, and a growing service territory. The company's financial position has benefited from off-system sales efforts and aggressive cost containment programs. Continued support from the historically supportive Florida Public Service Commission will be necessary as the company's construction program accelerates to meet projected demand in the mid-1990s. Construction expenditures will increase in 1993 and 1994 for the 260 mw Polk County combined cycle plant, scheduled for service in 1995. The company's most recent rate order, effective February 1993, provided increases of $1.2 million and $17.4 million for 1993 and 1994, with an allowed return on common equity of 12 percent. Capital contributions from parent TECO Energy also are expected to help support the capital structure. Tampa Electric, the largest subsidiary of TECO Energy, provides electric service to more than 475,000 customers in a 2,000 square mile area of west central Florida. -0- 6/21/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
CO: Hillsborough County Industrial Development Authority ST: Florida IN: SU: RTG
SM -- NY078 -- 4158 06/21/93 16:05 EDT
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|Date:||Jun 21, 1993|
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