PORT HURON, Mich., Nov. 1 /PRNewswire-FirstCall/ -- SEMCO ENERGY, Inc.
(NYSE: SEN) today announced that, on October 31, 2006, it entered into a
$55 million unsecured term loan with Union Bank of California, N.A. The
proceeds from this term loan will be used to prepay a portion of the Company's
8% Senior Notes due 2016. The term loan has a maturity of June 30, 2016, and
can be prepaid at any time at the option of the Company. Interest is at
variable rates based on LIBOR plus an applicable margin. The term loan
contains certain financial covenants which are consistent with the covenants
under the Company's existing revolving bank credit facility.
The Company also announced that all of the $59,494,000 principal amount of
the 8% Senior Notes due 2016 will be redeemed on November 30, 2006, at a
redemption price equal to 100% of the principal amount plus accrued interest
to the redemption date.
SEMCO ENERGY, Inc. distributes natural gas to more than 400,000 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.
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, rising commodity prices
and resulting increases in working capital requirements, changing conditions
in the capital markets, regulatory approval processes and rate recovery
mechanisms, gas procurement opportunities, compliance with covenants and
success in accomplishing financing objectives, maintaining an effective system
of internal controls, 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, Assistant Treasurer,
+1-248-458-6163, Media Contact: Timothy Lubbers, Director of Marketing and
Corporate Communications, +1-810-887-4208, both of SEMCO ENERGY, Inc.
4106 11/01/2006 16:08 EST http://www.prnewswire.com