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PROSPECTUS
Rule 424(b)(5)
Reg. No. 333-07853
FLORIDA PROGRESS CORPORATION
PROGRESS PLUS STOCK PLAN
The Progress Plus Stock Plan (the "Plan") of Florida Progress Corporation
(the "Company") provides shareholders of Florida Progress Corporation Common
Stock, without par value (the "Common Stock"), with an economical and convenient
method of purchasing additional shares of Common Stock. In addition,
NONSHAREHOLDERS WHO ARE RESIDENTS OF THE STATE OF FLORIDA may enroll in the Plan
by making an initial cash investment. EMPLOYEES OF THE COMPANY AND ITS
SUBSIDIARIES may also purchase Common Stock through automatic payroll
deductions. See "DESCRIPTION OF THE PLAN" beginning on page 4 for further
information concerning the Plan.
Investment options offered under the Plan are:
FULL DIVIDEND REINVESTMENT--Reinvest cash dividends on all Registered
Shares of Common Stock held by you in certificate form and all shares
credited to your Plan account.
PARTIAL DIVIDEND REINVESTMENT--Receive cash dividends by check on a
portion of the Registered Shares held by you and/or a portion of the
whole shares of Common Stock credited to your Plan account and reinvest
the cash dividends on the remainder of your shares.
CASH INVESTMENTS ONLY--Cash investments may be made at any time, up to
$100,000 per calendar year, with or without reinvesting dividends.
Cash dividends, cash investments and payroll deductions will be used to
purchase shares of Common Stock which, at the option of the Company, will be
either newly issued or will be purchased on behalf of Plan Participants in the
open market by an Independent Agent.
The price of newly issued shares will be the average of the high and low
sales prices of the Company's Common Stock as discussed in Question 17. The
price of shares purchased in the open market will be the weighted average price
at which the Independent Agent acquires the shares as also discussed in Question
17.
This Prospectus relates to 1,108,106 shares of Common Stock of the Company
and should be retained for future reference.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR BY ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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THE DATE OF THIS PROSPECTUS IS MARCH 19, 1998
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AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") and in accordance
therewith files reports, proxy statements and other information with the
Securities and Exchange Commission (the "SEC"). Reports, proxy statements and
other information filed by the Company can be inspected and copied at the SEC's
Public Reference Section, 450 Fifth Street, N.W., Washington, D.C. 20549, and
the following Regional Offices of the SEC: 7 World Trade Center, Suite 1300, New
York, New York 10048; and 500 West Madison Street, Suite 1400, Chicago, Illinois
60661-2511, and copies of such material can be obtained from the Public
Reference Section of the SEC, 450 Fifth Street, N.W., Washington, D.C. 20549, at
prescribed rates. The SEC maintains a web site at http://www.sec.gov containing
reports, proxy and information statements and other information regarding
registrants, including the Company, that file electronically with the SEC. In
addition, the Common Stock of the Company is listed on, and reports, proxy
material and other information concerning the Company may be inspected at, the
New York Stock Exchange, 20 Broad Street, New York, New York 10005, and the
Pacific Stock Exchange, 301 Pine Street, San Francisco, California 94104.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents filed by the Company with the SEC (File No. 1-8349),
as amended, are incorporated herein by reference:
1. Annual Report on Form 10-K for the year ended December 31, 1997, as
filed with the SEC on March 19, 1998.
2. The description of the Common Stock of the Company contained in Item
4 of the Company's Registration Statement on Form 8-B (No. 1-8349), that was
filed with the SEC on May 21, 1982 and declared effective on July 6, 1982,
as updated by the following reports of the Company, each of which is also
incorporated herein by reference: Part II, Item 2 of Quarterly Report on
Form 10-Q for the quarter ended March 31, 1985 that was filed with the SEC
on May 14, 1985; Part II, Item 4 of Quarterly Report on Form 10-Q for the
quarter ended March 31, 1990 that was filed with the SEC on May 14, 1990;
the description of the Company's Common Stock that is contained under the
heading "Description of Capital Stock" in the Company's Registration
Statement on Form S-3 (No. 33-51573) that was filed with the SEC on December
17, 1993 and declared effective on December 28, 1993; and Item 5 of the
Current Report on Form 8-K dated November 21, 1991 that was filed with the
SEC on November 27, 1991.
All documents filed by the Company pursuant to Section 13(a), 13(c), 14 or
15(d) of the Exchange Act after the date of this Prospectus and prior to the
termination of the offering shall be deemed to be incorporated by reference in
this Prospectus from the date of filing of such documents.
THE COMPANY WILL PROVIDE WITHOUT CHARGE TO EACH PERSON, INCLUDING ANY
BENEFICIAL OWNER, TO WHOM A COPY OF THIS PROSPECTUS HAS BEEN DELIVERED, UPON THE
WRITTEN OR ORAL REQUEST OF ANY SUCH PERSON, A COPY OF ANY AND ALL OF THE
DOCUMENTS REFERRED TO ABOVE WHICH HAVE BEEN OR MAY BE INCORPORATED IN THIS
PROSPECTUS BY REFERENCE, OTHER THAN EXHIBITS TO SUCH DOCUMENTS, UNLESS SUCH
EXHIBITS ARE SPECIFICALLY INCORPORATED BY REFERENCE. REQUESTS FOR SUCH COPIES
SHOULD BE DIRECTED TO: FLORIDA PROGRESS CORPORATION, INVESTOR RELATIONS, P.O.
BOX 33028, ST. PETERSBURG, FLORIDA 33733-8028 OR TELEPHONE TOLL FREE
1-800-937-2640.
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THE COMPANY
Florida Progress Corporation is a diversified electric utility holding
company headquartered in St. Petersburg, Florida and was incorporated in Florida
on January 21, 1982. The Company's primary subsidiary is Florida Power
Corporation ("Florida Power"). Florida Power was incorporated in Florida in 1899
and is an operating utility engaged in the generation, purchase, transmission,
distribution and sale of electricity primarily within the State of Florida.
Florida Power's service area covers about 20,000 square miles in central and
northern Florida and along the west coast of the state and includes St.
Petersburg and Clearwater as well as the areas surrounding Walt Disney World,
Orlando, Ocala and Tallahassee.
The Company's diversified operations are owned directly or indirectly
through Progress Capital Holdings, Inc. ("PCH"), a Florida corporation and
wholly owned subsidiary of the Company that was incorporated in 1988. PCH holds
the capital stock of, and provides funding for, the Company's diversified
subsidiaries. Its principal subsidiary is Electric Fuels Corporation. Formed in
1976, Electric Fuels is a coal mining and transportation services company
serving utility and industrial companies, including Florida Power. Its major
businesses include coal mining, procurement and transportation; bulk commodities
transportation; and railcar and marine repair facilities.
The Company has its principal offices at One Progress Plaza, St. Petersburg,
Florida 33701, and its telephone number is (813) 824-6400.
USE OF PROCEEDS
Since the requirements of Plan Participants may be satisfied by either the
issuance of new shares of Common Stock by the Company, or the purchase of shares
of Common Stock by the Independent Agent in the open market, the number of
shares of Common Stock, if any, that the Company ultimately will sell under the
Plan, or the prices at which such shares will be sold, is not known. If new
shares of Common Stock are issued by the Company under the Plan, the proceeds
from the sale will be used for working capital or other general corporate
purposes. If shares are purchased by the Independent Agent in the open market,
the Company will not receive any proceeds.
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DESCRIPTION OF THE PLAN
The following, which is set forth in question and answer form, constitutes a
complete statement of the Plan:
DEFINITIONS
AUTHORIZATION CARD -- The card to be completed by a registered shareholder
of the Company's Common Stock to participate in the Plan.
BUSINESS DAY -- Any day on which the New York Stock Exchange is open for the
business of trading securities.
COMMON DIVIDEND -- The cash dividend payable on Registered Shares.
DIVIDEND PAYMENT DATE -- The date on which dividends are payable on the
Company's Common Stock, usually the 20th day of March, June, September and
December.
DIVIDEND RECORD DATE -- The date on which a person or entity must be a
registered shareholder of Common Stock in order to receive dividends,
usually the 5th day of March, June, September and December.
ENROLLMENT FORM -- The form to be completed by a non-shareholder resident of
the State of Florida in order to enroll in the Plan.
INDEPENDENT AGENT -- The agent appointed by the Company from time to time,
who acts on behalf of Plan Participants in buying Common Stock on the open
market if the Company elects not to satisfy the requirements of Plan
Participants with newly issued shares. The Independent Agent will also sell
Plan Shares for Participants, upon written request directed to the Plan
Administrator.
INVESTMENT DATE -- The date on which shares of Common Stock are acquired
under the Plan. Currently, the Investment Date is the 20th day of each
month, unless such day is not a Business Day, in which case the Investment
Date is the next succeeding Business Day. If the Company is using the
Independent Agent to purchase stock for the Plan on the open market, and in
the unlikely event that the Independent Agent requires more than one day to
do so, the Investment Date will be the day on which the Independent Agent
completes the purchases.
INVESTOR RELATIONS -- The Investor Relations Department of the Company.
PARTICIPANT -- An individual or entity that has submitted an Authorization
Card, Payroll Deduction Authorization Card or Enrollment Form, had such card
or form approved by the Plan Administrator and enrolled in the Plan.
PAYROLL DEDUCTION AUTHORIZATION CARD -- The card to be completed by
employees of the Company in order to participate in the Plan.
PLAN ADMINISTRATOR -- BankBoston, N.A., which has been appointed by the
Company to assist in administering the Plan. The Plan Administrator also
serves as transfer agent, registrar and dividend paying agent for the
Company's Common Stock.
PLAN DIVIDEND -- The cash dividend payable on shares of Common Stock held by
the Plan Administrator in your Plan account.
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PLAN SHARES -- The shares of Common Stock held by the Plan Administrator in
a Participant's Plan account.
REGISTERED SHARES -- The shares of Common Stock for which a Participant
holds a stock certificate.
SAFEKEEPING SERVICE -- The service allowing Plan Participants to deposit any
or all of their Common Stock certificates with the Plan Administrator for
credit to their Plan account.
SUBSIDIARIES -- All entities that are controlled by the Company through
direct or indirect ownership of a majority of such entities' voting shares.
PURPOSE
1. WHAT IS THE PURPOSE OF THE PLAN?
The Plan offers shareholders, non-shareholders who are residents of the
State of Florida, and employees of the Company and its Subsidiaries a convenient
and economical way to purchase the Company's Common Stock. Once you are enrolled
in the Plan, cash dividends, as well as any cash investments and/or payroll
deductions, may be used to purchase shares of Common Stock (both whole and
fractional shares).
YOU SHOULD RECOGNIZE THAT THE COMPANY CANNOT ASSURE YOU OF A PROFIT OR
PROTECT YOU AGAINST A LOSS ON THE SHARES OF COMMON STOCK PURCHASED UNDER THE
PLAN.
ADVANTAGES AND FEATURES
2. WHAT ARE SOME OF THE ADVANTAGES AND FEATURES OF THE PLAN?
-- You may elect to have your cash dividends on all or a portion of your
shares of Common Stock automatically reinvested.
-- You may make cash investments of up to $100,000 per calendar year for
the purchase of Common Stock.
-- Non-shareholders who are residents of the State of Florida may enroll in
the Plan by making a minimum initial cash investment to purchase Common
Stock under the terms of the Plan.
-- Employees of the Company and its Subsidiaries may purchase shares of
Common Stock through automatic payroll deductions.
-- A full investment of funds is possible under the Plan because both full
and fractional shares will be credited to your Plan account.
-- You may deposit all of your certificates of Common Stock with the Plan
Administrator for safekeeping and credit to your Plan account.
-- You will receive a statement of account as soon as practicable following
each Investment Date on which shares are purchased.
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-- You will receive a quarterly statement of account with a record of your
year-to-date activity as soon as practicable following each Dividend
Payment Date.
-- Statements of account are your continuing record of transactions and
should be retained for tax purposes.
ADMINISTRATION
3. WHO ADMINISTERS THE PLAN?
Administration of the Plan is shared between the Company, the Plan
Administrator and the Independent Agent. The Plan Administrator will administer
the Plan, keep a continuous record of your participation and send you a periodic
statement of your account. If the Company elects to meet the requirements of
Plan Participants by purchasing shares of Common Stock in the open market, the
Independent Agent will act on behalf of Participants in buying such shares. The
Plan Administrator, working through the Independent Agent, will sell Plan Shares
for Participants upon written request.
The Company reserves the right to interpret and regulate the Plan as deemed
necessary or desirable. The Company, the Plan Administrator and the Independent
Agent will not be liable for any act done in good faith or for any good faith
omission to act, including, without limitation, any claim of liability (a)
arising out of failure to terminate a Participant's account upon the
Participant's death prior to receipt of written notice of such death, or (b)
with respect to the prices or times at which shares are purchased or sold for
Participants (except that the Company understands that in the opinion of the
Securities and Exchange Commission, this limitation of liability is not
effective to limit liabilities under the Securities Act of 1933 or other
applicable federal securities laws).
4. WHO SHOULD I CONTACT WITH QUESTIONS CONCERNING THE PLAN AND ITS
ADMINISTRATION?
You may contact the Plan Administrator with questions concerning the Plan by
writing to:
BankBoston, N.A.
c/o Boston Equiserve
P.O. Box 8040
Boston, MA 02266-8040
or by calling the Plan Administrator toll free at 1-800-352-1121 between the
hours of 8:00 a.m. and 6:00 p.m. Eastern Time. The Plan Administrator also
maintains a home page on the Internet's World Wide Web at
http://www.equiserve.com.
To request copies of the Company's Annual Report on Form 10-K (or other
documents incorporated by reference in this Prospectus), or with questions
concerning the Payroll Deduction Authorization Card and employee participation
in the Plan, you may contact the Company's Investor Relations department by
writing to:
Florida Progress Corporation
Investor Relations
P.O. Box 33028
St. Petersburg, FL 33733-8028
or by calling Investor Relations toll free at 1-800-937-2640.
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5. MAY THE PLAN BE MODIFIED OR DISCONTINUED?
The Company reserves the right to suspend, modify or discontinue the Plan at
any time. Any suspension, major modification or discontinuance of the Plan will
be announced by the Company to all registered holders of its Common Stock and
employees, including both Plan Participants and non-participants.
PARTICIPATION
6. WHO IS ELIGIBLE TO PARTICIPATE IN THE PLAN?
All registered holders of the Company's Common Stock, non-shareholders who
are residents of the State of Florida, and employees of the Company and its
Subsidiaries are eligible to participate in the Plan.
7. HOW DOES A REGISTERED SHAREHOLDER OF THE COMPANY'S COMMON STOCK PARTICIPATE?
If you are a registered shareholder of the Company's Common Stock, you may
join the Plan at any time by completing the Authorization Card and returning it
to the Plan Administrator. If your shares are registered in a name other than
your own (e.g., in the name of a broker or bank nominee), then in order to
participate in the Plan, you either must become a shareholder of record by
having your shares transferred into your name, or must request that the record
holder of your shares participate in the Plan on your behalf.
The Authorization Card allows you to decide the extent to which you want to
participate in the Plan. By checking the appropriate box you may select:
-- FULL DIVIDEND REINVESTMENT -- Reinvest cash dividends on all Registered
Shares of Common Stock held by you and on all shares credited to your
Plan account. Cash investments may also be made at any time.
-- PARTIAL DIVIDEND REINVESTMENT -- Receive cash dividends by check on a
portion of your Registered Shares held by you and/or a portion of the
whole shares credited to your Plan account and reinvest the cash
dividends on the remainder of your shares. Cash investments may also be
made at any time.
-- CASH INVESTMENTS ONLY -- Make cash investments at any time and continue
to receive cash dividends by check on all Registered Shares of Common
Stock held by you and on all shares credited to your Plan account.
The Authorization Card also provides for the appointment of the Independent
Agent to purchase shares on your behalf.
An Authorization Card and Plan Prospectus will be furnished to you at any
time upon request to the Plan Administrator.
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8. HOW DOES A NON-SHAREHOLDER WHO IS A RESIDENT OF THE STATE OF FLORIDA
PARTICIPATE?
After being furnished with the Plan Prospectus, a Florida resident may apply
for enrollment in the Plan by completing and returning the Enrollment Form to
the Plan Administrator, together with a check in an amount not less than $100
nor more than $100,000, made payable to "BankBoston, N.A."
The Enrollment Form requires you to provide verification of Florida
residency, and to appoint the Independent Agent to purchase shares on your
behalf. It also allows you to decide the amount of your initial investment,
which will be used to purchase full and fractional shares of the Company's
Common Stock. All cash dividends credited to your Plan account will be fully
reinvested and used to purchase additional shares of Common Stock, unless and
until you notify the Company otherwise (see Questions 26 and 27).
9. HOW DOES AN EMPLOYEE PARTICIPATE?
Any employee of the Company and its Subsidiaries may join the Plan at any
time by completing the Payroll Deduction Authorization Card and returning it to
Investor Relations.
The Payroll Deduction Authorization Card allows you to decide the dollar
amount to be deducted from your pay each month. The monthly deductions will be
used to purchase full and fractional shares of the Company's Common Stock. All
cash dividends credited to your Plan account will be fully reinvested and used
to purchase additional share of Common Stock, unless and until you notify the
Company otherwise (see Questions 26 and 27). The Payroll Deduction Authorization
Card also provides for the appointment of the Independent Agent to purchase
shares on your behalf.
Payroll Deduction Authorization Cards will be furnished to you at any time
upon request to Investor Relations. The completed card must be returned by the
20th day of the month in order to participate on the Investment Date of the next
succeeding month.
Payroll deduction authorizations will be for an indefinite period of time.
The employee must specify the amount to be withheld each month. The minimum
monthly deduction is $10.
Payroll deductions will be invested as of the Investment Date of the same
month.
DIVIDEND REINVESTMENT
10. HOW AND WHEN WILL CASH DIVIDENDS BE REINVESTED?
If you have elected to reinvest your cash dividends on your Registered
and/or Plan Shares, those dividends will be reinvested in additional shares of
the Company's Common Stock. At the option of the Company, reinvested dividends
will be used either to purchase authorized but unissued shares from the Company,
or shares that are purchased on the open market by the Independent Agent.
Cash dividends payable on any Dividend Payment Date which are to be
reinvested will be reinvested on the current monthly Investment Date. If the
Company has elected to meet the requirements of the Plan with Common Stock
purchased in the open market, the Independent Agent will determine the exact
timing of such purchases and the number of shares to be purchased, depending on
the amount of reinvested dividends, market conditions and the requirements of
federal securities laws. The price for open market purchases is explained in
Question 17.
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If the Company elects to issue authorized but unissued shares of its Common
Stock, these shares will be credited to your Plan account as of the Investment
Date. The price for these shares is explained in Question 17.
If a Participant's Authorization Card is received by the Plan Administrator
on or before the Dividend Record Date for the next dividend payment, then the
dividends payable will be used to purchase additional shares of Common Stock on
the upcoming Investment Date.
If the Authorization Card is received after the Dividend Record Date for the
next dividend payment, the reinvestment of dividends will start with the next
succeeding dividend payment.
CASH INVESTMENTS
11. WHO IS ELIGIBLE TO MAKE CASH INVESTMENTS?
All Plan Participants, whether or not they have authorized the reinvestment
of dividends, are eligible to make cash investments.
12. HOW ARE CASH INVESTMENTS MADE?
An initial cash investment may be made when enrolling by enclosing a check
with your Authorization Card, Payroll Deduction Authorization Card or Enrollment
Form. CHECKS SHOULD BE MADE PAYABLE TO "BANKBOSTON, N.A." and returned in the
envelope provided. Thereafter, cash investments may be submitted by using the
cash payment form attached to the statement of account, which will be sent to
you by the Plan Administrator. You may also send in a check without this form;
HOWEVER, YOUR PLAN ACCOUNT NUMBER MUST BE INCLUDED ON YOUR CHECK.
If you choose to participate by cash investments only, the Company, acting
through the Plan Administrator, will pay cash dividends by check on your
Registered Shares and Plan Shares purchased with your cash investments. If
employee Participants choose to participate by cash investments only, they must
terminate their payroll deductions (see Question 29).
13. WHAT ARE THE LIMITATIONS ON MAKING CASH INVESTMENTS?
The option to make cash investments is available to you at any time. CASH
INVESTMENTS, INCLUDING PAYROLL DEDUCTION AMOUNTS, CANNOT BE LESS THAN $10 PER
PAYMENT AND CANNOT EXCEED A TOTAL OF $100,000 PER CALENDAR YEAR. THE MINIMUM
INITIAL INVESTMENT FOR NON-SHAREHOLDER RESIDENTS OF THE STATE OF FLORIDA IS
$100. The same amount of money need not be sent for each Investment Date and
there is no obligation to make an investment each Investment Date.
14. WHEN WILL CASH INVESTMENTS BE INVESTED?
Cash investments will be invested monthly on the Investment Date. If the
Company has elected to meet the requirements of the Plan with Common Stock
purchased in the open market, the Independent Agent will determine the exact
timing of such purchases and the number of shares to be purchased, depending on
the amount of cash investments, market conditions and the requirements of
federal securities laws. The price for open market purchases is explained in
Question 17. Cash received on or after an Investment Date will be held by the
Plan Administrator until, and will be invested on, the next Investment Date.
SINCE NO INTEREST WILL BE PAID ON ANY CASH PAYMENTS RECEIVED AND HELD BY THE
PLAN
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ADMINISTRATOR PENDING INVESTMENT ON THE NEXT INVESTMENT DATE, YOU ARE URGED TO
SEND THEM SHORTLY BEFORE AN INVESTMENT DATE. HOWEVER, YOU SHOULD ALLOW
SUFFICIENT TIME TO ENSURE THAT YOUR CASH INVESTMENT WILL BE RECEIVED AT LEAST
ONE BUSINESS DAY PRIOR TO AN INVESTMENT DATE.
In order for dividends to be payable on shares of Common Stock purchased
with cash investments, your cash must be invested no later than the monthly
Investment Date prior to the next Dividend Record Date.
Cash investments will be refunded if a written request is received by the
Plan Administrator prior to the monthly Investment Date on which the cash was
intended for investment.
PURCHASES
15. HOW MANY SHARES OF COMMON STOCK WILL BE PURCHASED?
The number of shares purchased depends on the amount of your reinvested
dividends, any cash investments and the purchase price of the Common Stock. In
the case of an employee participant, the number of shares purchased also depends
on the amount of the employee's payroll deduction. Your Plan account will be
credited with the number of shares, including fractions computed to four decimal
places, equal to the total amount invested divided by the purchase price.
16. WHO PURCHASES THE SHARES FOR THE PLAN?
The Company may elect to satisfy the requirements of Plan Participants with
either newly issued shares of Common Stock, or shares of Common Stock purchased
on the open market. If the Company elects to purchase shares of Common Stock on
the open market, the Independent Agent will make all such purchases necessary to
meet the requirements of the Plan. The Company does not exercise any direct or
indirect control over the prices or timing of purchases made by the Independent
Agent on the open market. If open market purchases are not made, the shares
issued under the Plan will be from the authorized but unissued shares of Common
Stock of the Company.
17. WHAT IS THE PRICE OF SHARES PURCHASED FOR THE PLAN?
If the Company elects to satisfy the requirements of the Plan with shares of
Common Stock purchased on the open market, the price of such shares will be the
weighted average price at which the Independent Agent acquires the shares plus a
nominal brokerage commission and other fees. If the Company elects to satisfy
the requirements of the Plan with newly issued shares of Common Stock, the price
of such shares will be 100% of the average of the high and low sales prices of
the Company's Common Stock, based on the New York Stock Exchange Composite
Transactions on the respective Investment Date.
18. ARE ANY FEES OR EXPENSES INCURRED BY PARTICIPANTS?
All costs of administering the Plan will be paid by the Company, but
Participants will be required to pay a nominal brokerage commission and other
fees for shares purchased in the open market. Brokerage commissions will be a
discounted rate which is not expected to exceed $.10 per share. The brokerage
commission charged by the Independent Agent will appear on your Statement of
Account.
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Certain charges (see Question 31) may be incurred by Participants if they
withdraw from the Plan or if the Plan is discontinued by the Company.
REPORTS TO PARTICIPANTS
19. HOW WILL PARTICIPANTS BE ADVISED OF THEIR PURCHASES OF SHARES OF COMMON
STOCK?
As soon as practicable following each Investment Date on which shares are
purchased, you will receive a statement of your account. These statements are
your continuing record of the cost of your purchases and should be retained for
tax purposes. In addition, you will receive copies of the same communications
sent to every other registered shareholder of Common Stock including the
Company's annual report, interim reports, notice of annual meeting and proxy
statement, and certain income tax information.
CERTIFICATES
20. WILL STOCK CERTIFICATES BE ISSUED FOR SHARES OF COMMON STOCK ACQUIRED UNDER
THE PLAN?
Certificates for shares of Common Stock acquired under the Plan will not be
issued. Certificates will be registered in the name of the Plan Administrator or
a nominee as agent for the Participant. The number of shares credited to your
Plan account will be shown on your statement of account. This service protects
against loss, theft or destruction of stock certificates.
A CERTIFICATE FOR ANY NUMBER OF WHOLE SHARES UP TO THE FULL NUMBER OF SHARES
CREDITED TO YOUR PLAN ACCOUNT WILL BE ISSUED TO YOU IF YOU SO REQUEST IN WRITING
(see Question 31). Such request should be mailed to the Plan Administrator at
the address shown in Question 4.
Shares credited to your Plan account may not be pledged. If you wish to
pledge your shares, you must request that a certificate be issued in your name.
A certificate for fractional shares will not be issued under any circumstances.
21. IN WHOSE NAME WILL PLAN ACCOUNTS BE MAINTAINED AND CERTIFICATES REGISTERED
WHEN ISSUED?
A Plan account for a shareholder that enrolls in the Plan will be maintained
in the shareholder's name(s) as shown on the Plan Administrator's shareholder
records at the time the shareholder joins the Plan. An account for a
non-shareholder resident of the State of Florida will be maintained in the
name(s) indicated on the Enrollment Form. An account for an employee Participant
will be maintained in the name(s) indicated on the Payroll Deduction
Authorization Card. Certificates for whole shares of Common Stock will be so
registered when issued, except in instances such as death. Upon written request,
certificates can also be registered and issued in names other than the account
name, subject to compliance with any applicable laws and the payment by the
Participant of any applicable taxes, provided that the request bears the
signature(s) of the Participant(s) and the signature(s) is/are medallion
guaranteed by a commercial bank or member firm of the New York Stock Exchange or
American Stock Exchange.
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SAFEKEEPING SERVICE FOR COMMON STOCK CERTIFICATES
22. WHAT IS THE PURPOSE OF THE PLAN'S SAFEKEEPING SERVICE FOR CERTIFICATES AND
HOW DOES IT WORK?
The purpose of the Plan's Safekeeping Service is to permit Participants to
deposit any or all Common Stock certificates in their possession with the Plan
Administrator for safekeeping. DEPOSITED SHARES REPRESENTED BY COMMON STOCK
CERTIFICATES WILL BE TRANSFERRED INTO THE NAME OF THE PLAN ADMINISTRATOR OR A
NOMINEE, AS AGENT FOR PARTICIPANTS IN THE PLAN, AND WILL BE CREDITED TO THE
PARTICIPANT'S PLAN ACCOUNT. Thereafter, the shares will be treated in the same
manner as shares purchased through the Plan.
23. WHAT ARE THE ADVANTAGES OF THE PLAN'S SAFEKEEPING SERVICE?
The Plan's Safekeeping Service for stock certificates offers two significant
advantages to Participants. First, the risk associated with loss of your stock
certificates is eliminated. Second, because shares for safekeeping are treated
in the same manner as shares purchased through the Plan, they may be sold
through the Plan in a convenient and efficient manner.
24. HOW MAY COMMON STOCK CERTIFICATES BE DEPOSITED WITH THE PLAN ADMINISTRATOR?
Participants who wish to deposit their certificates of Common Stock for
safekeeping should send them, unsigned, to the Plan Administrator with written
instructions to deposit them to their Plan account. We recommend that securities
be sent via registered mail.
25. MAY SHARES REMAIN ON DEPOSIT IF PARTICIPATION IN THE PLAN IS DISCONTINUED?
No. Upon withdrawal from the Plan, Participants must elect to receive their
Plan Shares either in kind or in cash (see Questions 31 & 32).
CHANGING INVESTMENT OPTIONS
26. MAY INVESTMENT OPTIONS BE CHANGED?
Yes. You may make the following changes to your investment options:
(A) Begin or stop reinvesting cash dividends on all shares or less than all
shares registered in your name.
(B) Begin or stop receiving cash dividends on all or less than all whole
shares credited to your Plan account.
EVEN IF YOU STOP REINVESTING CASH DIVIDENDS ON ALL SHARES REGISTERED IN YOUR
NAME AND/OR CREDITED TO YOUR PLAN ACCOUNT, YOU MAY CONTINUE TO MAKE CASH
INVESTMENTS.
27. HOW DO PARTICIPANTS CHANGE THEIR INVESTMENT OPTIONS?
Participants may change their investment options at any time by completing
the account correspondence stub attached to their statement of account, or by
submitting a written request to the Plan Administrator. Changes will become
effective as soon as practicable after they are received.
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28. HOW DO EMPLOYEE PARTICIPANTS CHANGE OR DISCONTINUE THEIR PAYROLL DEDUCTIONS?
The amount of payroll deductions can be changed or stopped at any time by
written notice to Investor Relations using the Payroll Deduction Authorization
Card. Changing or discontinuing deductions will become effective as soon as
practicable.
29. MAY EMPLOYEES STOP THEIR PAYROLL DEDUCTIONS AND STILL PARTICIPATE IN THE
PLAN?
Yes. Employees who stop their payroll deductions may leave their shares in
the Plan. The Plan Administrator will continue to maintain the shares in
employees' Plan accounts unless otherwise instructed. These employees may also
continue to make cash investments.
WITHDRAWING FROM THE PLAN
30. MAY PARTICIPANTS WITHDRAW ALL OR A PORTION OF THEIR SHARES FROM THE PLAN?
Yes. The Plan is entirely voluntary and Participants may withdraw all or a
portion of their shares at any time. You may request that a certificate be
issued or that your shares be sold and the cash proceeds forwarded to you.
PARTICIPANTS WITHDRAWING ALL OF THEIR SHARES FROM THE PLAN AUTOMATICALLY
TERMINATE THEIR PARTICIPATION IN THE PLAN. HOWEVER, ANY ELIGIBLE SHAREHOLDER,
NON-SHAREHOLDER RESIDENT OF THE STATE OF FLORIDA, OR EMPLOYEE OF THE COMPANY OR
ITS SUBSIDIARIES MAY ELECT TO RE-ENROLL AT ANY TIME.
31. HOW DO PARTICIPANTS WITHDRAW ALL OR A PORTION OF THEIR SHARES FROM THE PLAN?
In order to withdraw from the Plan, Participants must notify the Plan
Administrator in writing at the address shown in Question 4. Written notice may
also be provided by completing the reverse side of the account correspondence
stub of the statement of account.
If Participants' requests are for partial withdrawals, the Participants must
specify that the Plan Administrator issue a certificate for, or instruct the
Independent Agent to sell, any number of whole shares credited to their Plan
account.
If Participants' requests are for full withdrawals, the Participants must
specify that the Plan Administrator issue a certificate for, or instruct the
Independent Agent to sell, all of the whole shares credited to their Plan
account (see Question 32).
If Participants' requests are for their shares to be sold, the Plan
Administrator will place a market order with the Independent Agent to sell those
shares as soon as practicable after receiving the requests. The Participants
will receive the proceeds of the sale less any brokerage commission and any
other fees as soon as practicable.
If Participants' requests for a full (but not partial) withdrawal are
received by the Plan Administrator on or after a Dividend Record Date for a
dividend payment, such requests will be processed as soon as practicable after
the records have been balanced for payment of the dividend and such dividend has
been reinvested in the participants' accounts. Requests for partial withdrawals
received on or after a Dividend Record Date for a dividend payment will be
processed in the usual manner.
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32. WHAT HAPPENS TO A FRACTIONAL SHARE WHEN PARTICIPANTS TERMINATE THEIR PLAN
ACCOUNTS?
When Participants terminate their Plan accounts, a cash payment representing
any fractional share will be mailed directly to them as soon as practicable. For
Participants selling whole shares and fractional shares, the price of the
fractional share will be based upon the same price received for the whole
shares.
For Participants receiving a certificate, the fractional share price will be
determined based upon the average of the high and low sales prices for the
Company's Common Stock based on the New York Stock Exchange Composite
Transactions on the date of termination.
INCOME TAXES
33. WHAT ARE THE FEDERAL INCOME TAX CONSEQUENCES OF PARTICIPATION IN THE PLAN?
In general, Participants in the Plan have the same federal income tax
obligations with respect to their dividends as do shareholders who are not
Participants. This means that dividends reinvested under the Plan are taxable as
having been received even though the Participants did not actually receive them
in cash but, instead, used them to purchase additional shares under the Plan.
The Internal Revenue Service ruled with respect to a plan similar to the
Company's Plan that the full fair market value of shares purchased with
reinvested cash dividends is taxable as dividend income to the Participants.
The tax basis of newly issued shares acquired through reinvested cash
dividends, cash investments and payroll deductions is equal to the fair market
value of the Common Stock on the day the shares are purchased. The fair market
value for these shares is determined by calculating 100% of the average of the
high and low sales prices based on the New York Stock Exchange Composite
Transactions on the purchase date.
The tax basis of shares acquired in the open market is equal to the purchase
price per share (including brokerage commissions and other fees). The purchase
price is determined by calculating the weighted average price at which the
Independent Agent acquires the shares.
The holding period for the shares acquired under the Plan commences the day
after the applicable purchase date.
FOR FURTHER INFORMATION AS TO THE TAX CONSEQUENCES OF PARTICIPATION IN THE
PLAN, YOU ARE ADVISED TO CONSULT WITH YOUR OWN TAX ADVISOR.
34. WHAT PROVISIONS ARE MADE FOR FOREIGN SHAREHOLDERS?
In the case of foreign shareholders who have elected to reinvest cash
dividends and whose cash dividends are subject to United States income tax
withholding, an amount equal to the cash dividends less the amount of tax
required to be withheld will be applied to the purchase of shares of Common
Stock.
Cash investments received from foreign shareholders must be in United States
currency and will be invested in the same manner as investments from other
Participants.
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OTHER INFORMATION
35. IF A PARTICIPANT HAS CERTIFICATED SHARES OF COMMON STOCK, AND HAS BEEN
REINVESTING DIVIDENDS ON THOSE SHARES AS NEW SHARES HELD UNDER THE PLAN,
WHAT HAPPENS TO THE PLAN SHARES WHEN THE PARTICIPANT SELLS OR TRANSFERS ALL
OF THE CERTIFICATED SHARES?
If Participants dispose of all certificated shares of Common Stock
registered in their names, the Plan Administrator will continue to maintain the
shares in their Plan accounts unless otherwise instructed.
36. WHAT HAPPENS IF THE COMPANY ISSUES A STOCK DIVIDEND, DECLARES A STOCK SPLIT,
OR HAS A RIGHTS OFFERING?
Any shares of Common Stock distributed by the Company as a stock dividend on
shares credited to your Plan account, or on any split of these shares, will be
credited to your Plan account. In a rights offering, your entitlement will be
based on your holdings, including those credited to your Plan account. Rights
from a rights offering applicable to shares credited to your Plan account,
however, will be sold by the Plan Administrator. The proceeds will be credited
to your Plan account and applied as a cash investment to purchase shares of
Common Stock on the next Investment Date.
Participants wishing to be in a position to exercise such rights may
withdraw shares credited to their Plan accounts as described under Question 31
above.
37. HOW WILL SHARES HELD UNDER THE PLAN BE VOTED AT MEETINGS OF SHAREHOLDERS?
For each meeting of shareholders, you will receive a proxy which will enable
you to vote shares registered in your name and also shares credited to your Plan
account.
LEGALITY
Certain matters relating to the legality of the Common Stock offered hereby
will be passed upon for the Company by Kenneth E. Armstrong, Esq., Vice
President and General Counsel of the Company.
EXPERTS
The financial statements and schedules included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1997, have been incorporated
by reference herein in reliance upon the report of KPMG Peat Marwick LLP,
independent certified public accountants, incorporated by reference herein, and
upon the authority of said firm as experts in accounting and auditing.
The statements made herein and in the documents incorporated herein by
reference that relate to matters of law or express legal conclusions are made on
the authority of Kenneth E. Armstrong, Esq., Vice President and General Counsel
of the Company, as an expert, and are included herein on the authority of such
counsel.
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TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
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<S> <C>
Available Information............................ 2
Incorporation of Certain Documents by
Reference...................................... 2
The Company...................................... 3
Use of Proceeds.................................. 3
Description of the Plan.......................... 4
Legality......................................... 15
Experts.......................................... 15
</TABLE>
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NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS OR INCORPORATED BY
REFERENCE, AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST
NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY. THIS PROSPECTUS
DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF
THESE SECURITIES IN ANY STATE TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH
OFFER OR SOLICITATION IN SUCH STATE. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR
ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE AN IMPLICATION
THAT INFORMATION IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE.
4400-PROS-98
[LOGO]
A LOW-COST INVESTMENT PLAN
FROM
FLORIDA PROGRESS CORPORATION
--------------
COMMON STOCK
(WITHOUT PAR VALUE)
--------------
PROSPECTUS
DATED MARCH 19, 1998
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