SCANA Corporation and Subsidiary Refinance $200 Million of Long-Term Debt; SCANA To Redeem $100 Million of Long-Term Debt
Investor Contacts:
John Winn
803-217-9240
jwinn@scana.com  

Bryan Hatchell
803-217-7458
bhatchell@scana.com


Columbia, SC, March 1, 2005…SCANA Corporation (NYSE:SCG) and its principal subsidiary, South Carolina Electric & Gas Company, jointly announced the sale today of $200 million in long-term debt securities in two transactions, proceeds of which will be used to refinance a like amount of outstanding long-term debt. SCANA Corporation also announced the redemption of $100 million in long-term debt.

SCANA Corporation sold, in a negotiated offering, $100 million principal amount of senior unsecured floating rate Medium-Term Notes due March 1, 2008. The three-year notes, which will be priced to the public at 100 percent, are callable in whole or in part on or after September 1, 2005. The interest rate on the notes will be the 3-month LIBOR plus 15 basis points, and will be reset quarterly. Net proceeds from this offering, together with available cash, will be used by SCANA to redeem $200 million principal amount of floating-rate Medium-Term Notes due November 15, 2006.
 
South Carolina Electric & Gas Company sold, in a negotiated offering, $100 million of 5.25 percent series First Mortgage Bonds due March 1, 2035. The 30-year bonds were priced to SCE&G at 97.304 percent, and are initially being offered to the public at 98.179 percent to yield 5.373 percent to maturity. Net proceeds from this offering, together with available cash, will be used to refinance $100 million principal amount of 7.625 percent series First Mortgage Bonds due April 1, 2025.
 
“These two transactions reflect our ongoing commitment to strengthen SCANA’s overall financial condition by reducing leverage and taking advantage of favorable interest rates,” said Kevin Marsh, senior vice president and chief financial officer. “By refinancing $200 million of long-term debt and early redeeming another $100 million, we will reduce our annual interest expense and improve our coverage and capitalization ratios.”

Banc of America Securities LLC, UBS Investment Bank and Wachovia Securities acted as joint book-running managers for both of the transactions. BB&T Capital Markets and BNY Capital Markets, Inc. acted as co-managers on the South Carolina Electric & Gas Company First Mortgage Bonds. BB&T Capital Markets acted as co-manager on the SCANA Medium-Term Notes.

It is anticipated that the new Medium-Term Notes and First Mortgage Bonds will be issued on March 8, 2005. Both transactions are subject to normal closing conditions.
 
Registration statements relating to these securities have been filed with the Securities and Exchange Commission and have become effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering of SCANA Medium-Term Notes may be made only by means of a prospectus and related pricing supplement, copies of which may be obtained by contacting UBS Investment Bank, Attention: Prospectus Department, Telephone 888-827-7275. The offering of South Carolina Electric & Gas Company First Mortgage Bonds may be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained by contacting Banc of America Securities LLC, Prospectus Department, Telephone 646-733-4133.

SCANA Corporation, a Fortune 500 company headquartered in Columbia, SC, is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. South Carolina Electric & Gas Company is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity in the central, southern and southwestern portions of South Carolina. The company also provides retail natural gas service in 34 of the state’s 46 counties. Information about SCANA and its businesses is available on SCANA’s Web site at www.scana.com.