Teco Energy Inc. (NYSE: TE) is buying New Mexico Gas Co. for $950 million, in the latest energy deal.
New Mexico Gas provides electric and gas utility services to 509,000 primarily-residential customers in New Mexico. The company is a subsidiary of Continental Energy Systems LLC.
When the deal closes, Teco will have more than 1.5 million customers. The Tampa, Fla.-based energy company provides utility services to customers in Florida. It also owns Teco Coal, a coal mining company that operates in Kentucky and Virginia.
The deal value includes $200 million in debt assumption.
Morgan Stanley (NYSE: MS), Teco’s financial adviser, is providing a bridge financing facility for the transaction. Partner Sheldon Adler and associate Karen Suber from Skadden Arps Slate Megher & Flom LLP with Cuddy & McCarthy LLP is acting as Teco’s legal counsel. Credit Suisse Securities (USE) LLC and Tudor Pickering Holt & Co. are Continental Systems LLC’s financial advisers. Cravath Swaine & Moore LLP is providing legal advice to Conitnental.