EVANSVILLE, IN--(Marketwired - Aug 29, 2014) - Vectren Corporation (Vectren) (
Prior to the sale, Vectren Fuels, headquartered in Evansville, Ind., owned three underground coal mines in southwestern Indiana, including two mines in Oaktown, Ind., and one in Petersburg, Ind.
The sales price is $296 million in cash, plus a $24 million change in working capital from Dec. 31, 2013, until the Aug. 29, 2014 closing of the transaction and is further subject to a final working capital settlement in 90 days. The after-tax net proceeds from the sale are estimated to be $280 million. The proceeds will be used initially to retire $200 million in outstanding Vectren Capital bank term loans and to pay down outstanding short-term debt. Additional long-term debt refinancing opportunities are available in the next year or two, through normal maturities, to further realize additional interest savings. At June 30, 2014, a loss on the transaction of $20 million was recorded. After all costs related to the transaction through the date of close are reflected, the final loss on the transaction is estimated to be approximately ($20) to ($22) million, or ($0.24) to ($0.26) per share. Operating results for 2014, through the date of close, are estimated to be a loss of ($1.0) to ($2.0) million.
Following prior sales of its retail gas marketing and wholesale gas marketing businesses in 2011 and 2013, respectively, now that the sale of Vectren Fuels is closed, the company has fully exited its nonutility commodity-related businesses.
About Vectren
Vectren Corporation (
Media contact: Chase Kelley (812) 491-4128 kckelley@vectren.com Investor contact: Robert Goocher (812) 491-4080 rgoocher@vectren.com
