FARMINGTON HILLS, Mich., June 1 /PRNewswire-FirstCall/ -- SEMCO ENERGY,
Inc. (NYSE: SEN) today announced the private placement of $19 million of
convertible preference shares (the "Securities") to K-1 GHM, LLLP ("K-1"), an
affiliate of private equity firm k1 Ventures Limited. The transaction
represents the second tranche of the previously announced $50 million issuance
of the Securities to K-1 and was approved by the Company's shareholders at the
Annual Meeting of Shareholders on May 24, 2004. The Company initially issued
$31 million of the Securities, and related warrants to purchase Common stock,
to K-1 on March 19, 2004. The terms of the issuance are the same as those of
the previously issued shares.
The Company will use the net proceeds from the private placement to repay
existing indebtedness. The Company also announced that it has called the $30
million principal amount of 8% Series Notes due 2010. The redemption will
occur on June 30, 2004.
"These transactions represent continued progress in the Company's strategy
to improve its capital structure by reducing the Company's debt to total
capitalization ratio. Our goals remain to successfully position the Company
to achieve earnings growth and build value for our shareholders by focusing on
our gas distribution businesses," said George A. Schreiber, Jr., President and
Chief Executive Officer of SEMCO ENERGY, Inc.
This announcement is neither an offer to sell nor a solicitation of an
offer to buy any of these securities and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offer, solicitation or
sale is unlawful.
SEMCO ENERGY, Inc. is a diversified energy and infrastructure company that
distributes natural gas to approximately 391,000 customers in Michigan and
Alaska. It owns and operates businesses involved in natural gas pipeline
construction services, propane distribution and intrastate pipelines and
natural gas storage in several regions in the United States. In addition,
SEMCO provides information technology, specializing in serving mid-sized
companies in various sectors.
k1 Ventures Limited invests in a wide range of investments across diverse
sectors. k1 Ventures Limited is domiciled in the Republic of Singapore and is
listed on the Singapore Exchange Securities Trading Limited (the Singapore
Stock Exchange). K-1 GHM, LLLP is an affiliate of k1 Ventures Limited.
The following is a "Safe Harbor" statement under the Private Securities
Litigation Reform Act of 1995. This release contains forward-looking
statements that involve risks and uncertainties. Statements that are not
historic facts, including statements about the Company's outlook, beliefs,
plans, goals and expectations, are forward-looking statements. Factors that
may impact forward-looking statements include, but are not limited to, the
effects of weather, the economic climate, competition, commodity prices,
changing conditions in the capital markets, regulatory approval processes,
success in obtaining new business, the Company's ability to implement its
strategic, operational and financial initiatives, management performance and
other risks detailed from time to time in the Company's Securities and
Exchange Commission filings.
SOURCE SEMCO ENERGY, Inc.
/CONTACT: Analysts Contact: Thomas Connelly, Director of Investor
Relations, +1-248-702-6240, or Media Contact: Laurie Owens, Director of
Customer Service, +1-810-987-2200, Ext. 2023, both of SEMCO ENERGY, Inc./
/Web site: http://www.semcoenergy.com /
CO: SEMCO ENERGY, Inc.; K-1 GHM, LLLP
IN: OIL UTI
-- DETU048 --
3327 06/01/2004 17:22 EDT http://www.prnewswire.com