PORT HURON, Mich., Sept. 15 /PRNewswire-FirstCall/ -- SEMCO ENERGY, Inc.
(NYSE: SEN) today announced it has entered into a $120 million unsecured
revolving credit facility with LaSalle Bank, formerly known as Standard
Federal Bank, as administrative agent and a syndicate of lenders (the
Agreement). The Agreement replaces the Company's existing $100.8 million
credit facility, which was due to expire on September 23, 2005. The Agreement
has a maturity date of September 15, 2008. Borrowings under the Agreement may
be used to refinance existing debt, to provide for the working capital
requirements and general corporate purposes of the Company and its
subsidiaries and to finance acquisitions permitted under the Agreement. The
Agreement contains certain loan covenants, including, among others, financial
covenants requiring a maximum total leverage ratio, a minimum interest
coverage ratio and a minimum net worth test.
"Entering into this credit facility is another important milestone in the
improvement of the Company's financial condition. The new facility should
provide adequate liquidity for the Company for the foreseeable future," said
George A. Schreiber, Jr., SEMCO ENERGY, Inc. President and Chief Executive
Officer. Schreiber continued: "I am pleased with the length and terms of the
new credit facility. In my view, this new credit facility reflects our
accomplishments over the past year and is another confirmation that we are on
the right course."
SEMCO ENERGY, Inc. distributes natural gas to more than 404,000 customers
combined in Michigan, as SEMCO ENERGY GAS COMPANY, and in Alaska, as ENSTAR
Natural Gas Company. It also owns and operates businesses involved in propane
distribution, intrastate pipelines and natural gas storage in various regions
of the United States.
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, success in defending claims against the
Company, 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 Treasury and
Investor Relations, 1-248-458-6163, or Media Contact: Timothy Lubbers,
Director of Marketing & Corporate Communications, 1-810-887-4208, both of
SEMCO ENERGY, Inc.
3152 09/15/2005 12:00 EDT http://www.prnewswire.com