The Tennessee Energy Acquisition Corporation Announces Receipt of Requisite Consents and Expiration of Consent Solicitation

NEW YORK, Jan. 9, 2012 /PRNewswire/ -- The Tennessee Energy Acquisition Corporation ("TEAC") announced today that it has received the requisite consents for its previously announced consent solicitation for its Gas Project Revenue Bonds, Series 2006A (the "Series 2006A Bonds") and Series 2006B (the "Series 2006B Bonds," and, together with the Series 2006A Bonds, the "Series 2006 Bonds").  The consent solicitation expired at 5:00 p.m., New York City time, on January 6, 2012 (the "Expiration Date"). 

As of the Expiration Date, D.F. King & Co., which acted as the Tabulation Agent in the consent solicitation, advised TEAC that it had received the consent of a majority in principal amount of the Series 2006A Bonds and Series 2006B Bonds.  The proposed amendments are expected to become operative upon the satisfaction of certain terms and conditions, including the Series 2006A Bonds receiving ratings of at least "A3" from Moody's, "A-" from S&P and "A" from Fitch, and the Series 2006B Bonds maintaining a rating of at least "BBB" from Fitch. 

The complete terms and conditions of the consent solicitation are described in the Consent Solicitation Statement and Supplement to Consent Solicitation Statement dated December 12, 2011.  Copies of the Consent Solicitation Statement, the Supplement to the Consent Solicitation Statement, and related documents may be obtained from D.F. King & Co., the Information Agent and Tabulation Agent for the consent solicitation, at (800) 431-9645 (toll-free) or (212) 269-5550 (collect). 

Wells Fargo Securities, LLC acted as Solicitation Agent for the consent solicitation.

This announcement is for informational purposes only and is not a solicitation of consents with respect to any securities.  This announcement shall not constitute an offer to buy or a solicitation of an offer to sell any Series 2006 Bonds. 

TEAC is a public corporation of the State of Tennessee and an instrumentality of its 21 associated municipalities and the State of Tennessee.  TEAC provides natural gas supply, transportation and management services on a nonprofit basis to its associated municipalities, each of which owns and operates a municipal gas utility in Tennessee.  TEAC has sold all of the gas supply financed with the Series 2006 Bonds to 17 of its associated municipalities and to nine other municipal gas systems and joint action agencies in the southeastern U.S.  To date, this gas supply project has provided over 100 billion cubic feet of clean, reliable and economical natural gas to the project participants.

SOURCE Tennessee Energy Acquisition Corporation