FARMINGTON HILLS, Mich., Dec. 12 /PRNewswire-FirstCall/ --
SEMCO ENERGY, Inc. (NYSE: SEN) announced today that it privately placed $50
million in aggregate principal amount of its 7.75% senior unsecured notes due
2013 for 104.25% of their principal amount. The notes will be offered to
certain institutional investors in an offering exempt from the registration
requirements of the Securities Act of 1933, as amended. The notes are of the
same class as SEMCO's outstanding 7.75% notes issued in May of this year.
The offering is being done concurrently with the amendment of SEMCO's
existing bank credit facility and SEMCO intends to use the proceeds of the
offering to repay indebtedness under its bank credit facility. The amendment
to the bank credit facility reduces the aggregate commitment by $30 million to
$125 million and modifies the debt-to-capitalization ratio covenant to 72% or
less through March 31, 2004, as long as the sale of Alaska Pipeline Company
has not been consummated.
The notes to be offered have not been registered under the Securities Act
and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. This press release shall
not constitute an offer to sell or solicitation of an offer to buy such notes.
SEMCO ENERGY, Inc. distributes natural gas to approximately 385,000
customers combined in Michigan, as SEMCO ENERGY GAS COMPANY, and in Alaska, as
ENSTAR Natural Gas Company. It owns and operates businesses involved in
natural gas pipeline construction services, propane distribution, intrastate
pipelines and natural gas storage in various regions of the United States. In
addition, it provides information technology and outsourcing services,
specializing in the mid-range computer market.
This document contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 that are based on current
expectations, estimates and projections of SEMCO Energy, Inc. and its
subsidiaries (the "Company"). Statements that are not historical facts,
including without limitation statements about the Company's outlook, beliefs,
plans, goals and expectations, are forward-looking statements. In addition,
forward-looking statements generally can be identified by the use of forward-
looking terminology such as "may," "will," "expect," "intend," estimate,"
"anticipate," "believe" or "continue" or the negatives of these terms or
variations of them or similar terminology. These statements are subject to
potential risks and uncertainties and, therefore, actual results may differ
materially. The Company undertakes no obligation to update publicly any
forward-looking statements whether as a result of new information, future
events or otherwise.
SOURCE SEMCO ENERGY, Inc.