Short-Term Debt

9 Months Ended

Sep. 30, 2014

6. Short-Term Debt

At Sept. 30, 2014 and Dec. 31, 2013, the following credit facilities and related borrowings existed:

Credit Facilities
	Sep 30, 2014						Dec 31, 2013
					Letters						Letters
	Credit		Borrowings		of Credit		Credit		Borrowings		of Credit
(millions)	Facilities		Outstanding ⁽¹⁾		Outstanding		Facilities		Outstanding ⁽¹⁾		Outstanding
Tampa Electric Company:
5-year facility ⁽²⁾	$	325.0	$	0.0	$	0.7	$	325.0	$	6.0	$	0.7
1-year accounts receivable facility		150.0		0.0		0.0		150.0		78.0		0.0
TECO Energy/TECO Finance:
5-year facility ⁽²⁾⁽³⁾		300.0		55.0		0.0		200.0		0.0		0.0
New Mexico Gas Company:
5-year facility⁽²⁾		125.0		17.0		1.7		0.0		0.0		0.0
Total	$	900.0	$	72.0	$	2.4	$	675.0	$	84.0	$	0.7

(1) Borrowings outstanding are reported as notes payable.
(2) This 5-year facility matures Dec. 17, 2018.
(3) TECO Finance is the borrower and TECO Energy is the guarantor of this facility.

At Sept. 30, 2014, these credit facilities required commitment fees ranging from 12.5 to 30.0 basis points. The weighted-average interest rate on outstanding amounts payable under the credit facilities at Sept. 30, 2014 and Dec. 31, 2013 was 1.37% and 0.56%, respectively.

Tampa Electric Company Accounts Receivable Facility

On Feb. 14, 2014, TEC and TRC amended their $150 million accounts receivable collateralized borrowing facility, entering into Amendment No. 12 to the Loan and Servicing Agreement with certain lenders named therein and Citibank, N.A. as Program Agent. The amendment (i) extends the maturity date to Feb. 13, 2015, (ii) provides that TRC will pay program and liquidity fees, which will total 70.0 basis points, (iii) continues to provide that the interest rates on the borrowings will be based on prevailing asset-backed commercial paper rates, unless such rates are not available from conduit lenders, in which case the rates will be at an interest rate equal to, at TEC’s option, either Citibank’s prime rate (or the federal funds rate plus 50 basis points, if higher) or a rate based on the LIBOR (if available) plus a margin, (iv) confirms that CAFCO, LLC will be the Committed Lender and Conduit Lender and (v) makes other technical changes.

TECO Energy Credit Agreement Assigned to and Assumed by NMGC

As previously disclosed, on Dec. 17, 2013, TECO Energy entered into a $125 million bank credit facility, pursuant to which it was the initial party to the Credit Agreement (the NMGC Credit Agreement). TECO Energy had no rights or obligations to borrow under the NMGC Credit Agreement, which was entered into solely with the intent of it being assigned to, and assumed by, NMGC upon the closing of the Acquisition. Pursuant to the terms of the NMGC Credit Agreement, on Sept. 2, 2014, TECO Energy designated NMGC as the borrower under the NMGC Credit Agreement by delivering a Joinder and Release Agreement duly executed by TECO Energy and NMGC, whereupon (i) NMGC became the borrower for all purposes of the NMGC Credit Agreement and the other credit facility documents under the NMGC Credit Agreement, and (ii) TECO Energy ceased to be a party to the NMGC Credit Agreement and any further rights or obligations thereunder. The NMGC Credit Agreement (i) has a maturity date of Dec. 17, 2018 (subject to further extension with the consent of each lender); (ii) allows NMGC to borrow funds at a rate equal to the one-month London interbank deposit rate plus a margin; (iii) as an alternative to the above interest rate, allows NMGC to borrow funds at an interest rate equal to a margin plus the higher of JPMorgan Chase Bank’s prime rate, the federal funds rate plus 50 basis points, or the London interbank deposit rate plus 1.00%; (iv) allows NMGC to borrow funds on a same-day basis under a Swingline Loan provision, which loans mature on the fourth Banking Day after which any such loans are made and bear interest at an interest rate as agreed by the Borrower and the relevant Swingline Lender prior to the making of any such loans; (v) allows NMGC to request the lenders to increase their commitments under the credit facility by up to $75 million in the aggregate; and (vi) includes a $40 million letter of credit facility.

TECO Energy and TECO Finance Bridge Facility

As previously disclosed, TECO Energy and TECO Finance entered into a $1.075 billion senior unsecured bridge credit agreement (the Bridge Facility) on Jun. 24, 2013, among TECO Energy as guarantor, TECO Finance as borrower, Morgan Stanley Senior Funding, Inc. (Morgan Stanley) as administrative agent, sole lead arranger and sole book runner, and Morgan Stanley together with nine other banks as lenders in the Bridge Facility. TECO Energy unconditionally guaranteed TECO Finance’s obligations under the Bridge Facility. In the third quarter of 2014, TECO Energy permanently financed the NMGC Acquisition with a combination of (i) a TECO Energy equity offering, (ii) the issuance of debt at NMGC and NMGI, (iii) cash on hand and (iv) short-term borrowings. Upon closing of the acquisition on Sept. 2, 2014, the commitment under the Bridge Facility was permanently cancelled by TECO Energy and TECO Finance.

Amendment of TECO Energy/TECO Finance, Tampa Electric Company, and New Mexico Gas Company Bank Credit Facilities

On Sept. 30, 2014, TECO Energy amended its $200 million bank credit facility, entering into Amendment No. 2 to its Fourth Amended and Restated Credit Agreement dated as of Dec. 17, 2013, as previously amended, (the TECO Credit Facility) whereby TECO Energy continues as Guarantor and its wholly-owned subsidiary, TECO Finance, continues as Borrower. The amendment increases the total commitments under the TECO Credit Facility to $300 million, changed the swingline commitments, and reallocates commitments among the lenders.

On Sept. 30, 2014, TEC amended its $325 million bank credit facility, entering into Amendment No. 2 to its Fourth Amended and Restated Credit Agreement dated as of Dec. 17, 2013, as previously amended. The amendment changed the swingline commitments and reallocates commitments among the lenders.

On Sept. 30, 2014, NMGC amended its $125 million bank credit facility, entering into Amendment No. 2 to its Credit Agreement dated as of Dec. 17, 2013, as previously amended. The amendment changed the swingline commitments and reallocates commitments among the lenders.

Tampa Electric Company [Member]

Short-Term Debt

6. Short-Term Debt

At Sept. 30, 2014 and Dec. 31, 2013, the following credit facilities and related borrowings existed:

Credit Facilities
	Sep 30, 2014						Dec 31, 2013
					Letters						Letters
	Credit		Borrowings		of Credit		Credit		Borrowings		of Credit
(millions)	Facilities		Outstanding ⁽¹⁾		Outstanding		Facilities		Outstanding ⁽¹⁾		Outstanding
Tampa Electric Company:
5-year facility ⁽²⁾	$	325.0	$	0.0	$	0.7	$	325.0	$	6.0	$	0.7
1-year accounts receivable facility		150.0		0.0		0.0		150.0		78.0		0.0
Total	$	475.0	$	0.0	$	0.7	$	475.0	$	84.0	$	0.7

(1)	Borrowings outstanding are reported as notes payable.

(2)	This 5-year facility matures Dec. 17, 2018.

At Sept. 30, 2014, these credit facilities required commitment fees ranging from 12.5 to 30.0 basis points. The weighted-average interest rate on outstanding amounts payable under the credit facilities at Dec. 31, 2013 was 0.56%. There were no outstanding borrowings at Sept. 30, 2014.

Tampa Electric Company Accounts Receivable Facility

On Sept. 30, 2014, TEC amended its $325 million bank credit facility, entering into Amendment No. 2 to its Fourth Amended and Restated Credit Agreement dated as of Dec. 17, 2013, as previously amended. The amendment modifies the swingline commitments and reallocates commitments among the lenders.

- Definition

The entire disclosure for short-term debt.

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