US Utility Sheds Guatemala Assets

Teco Energy has agreed to sell its stakes in two power plants and related facilities in Guatemala for $228m, it says. In the cash deal, the Teco Guatemala unit will sell the Alborada and San Jose plants and the related solid-fuel handling and port facilities to privately-held Sur Electrica. Teco has decided to focus on its core US businesses, and will use $25m of the proceeds from the sale to prepay projects debt tied to San Jose, and the remainder to repurchase Teco shares and pay down US-level debt. The company expects the sale to be dilutive to its earnings in 2013 and 2014. The Alborda portion closed last week, while the San Jose portion should close in 1Q 2013. Citi advised Teco.