RALEIGH, N.C., Nov. 7, 2011 /PRNewswire/ — Progress Energy (NYSE: PGN) announced today that it has commenced a tender offer for any and all of its outstanding contingent value obligations (CVOs).

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The tender offer is being made pursuant to the terms and conditions described in Progress Energy’s Offer to Purchase, dated Nov. 7, 2011, and the accompanying letter of transmittal. Under the terms of the tender offer, the purchase price will be $0.75 for each CVO tendered and accepted in the tender offer, without interest and subject to applicable withholding.

The tender offer is scheduled to expire at midnight, Eastern Time, Feb. 15, 2012, unless extended, amended or earlier terminated by Progress Energy in its sole discretion. However, Progress Energy may accept CVOs for purchase from holders who validly tender CVOs by 5 p.m., Eastern Time, Dec. 15, 2011, and have not withdrawn them.

The tender offer is not subject to the receipt of any minimum amount of CVOs, but is subject to the general conditions set forth in the Offer to Purchase. Holders of CVOs are urged to read the Offer to Purchase and the accompanying letter of transmittal carefully before making any decision with respect to the tender offer.

Progress Energy has engaged Phoenix Advisory Partners as information agent. Questions regarding the tender offer may be directed to Phoenix Advisory Partners at (877) 478-5038 (toll free) or (212) 493-3910 (collect). The depositary for the tender offer is American Stock Transfer, LLC.

This news release does not constitute an offer to purchase or the solicitation of an offer to sell with respect to the CVOs. The tender offer described in this release is made solely pursuant to the Offer to Purchase and accompanying letter of transmittal. No offer, solicitation or purchase will be made in any jurisdiction in which such offer, solicitation or purchase would be unlawful.

About Progress Energy

Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 500 energy company with more than 22,000 megawatts of generation capacity and approximately $10 billion in annual revenues. Progress Energy includes two major electric utilities that serve about 3.1 million customers in the Carolinas and Florida. The company has earned the Edison Electric Institute’s Edison Award, the industry’s highest honor, in recognition of its operational excellence, and was the first utility to receive the prestigious J.D. Power and Associates Founder’s Award for customer service. The company is pursuing a balanced strategy for a secure energy future, which includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. Progress Energy celebrated a century of service in 2008.

SOURCE Progress Energy