Colorado Interstate Gas Company Announces Pricing and Early Tender Results of Pending Cash Tender Offer for Its 5.95-percent Sen
December 13 2007 - 9:00AM
PR Newswire (US)
HOUSTON, Dec. 13 /PRNewswire-FirstCall/ -- Colorado Interstate Gas
Company (CIG), a majority owned subsidiary of El Paso Corporation
(NYSE:EP), announced today that it has determined the consideration
to be paid in connection with its pending cash tender offer for its
5.95-percent Senior Notes due March 15, 2015 (CUSIP No. 193522AH9)
(the 5.95-percent Notes). CIG also announced the termination of the
related tender offer for its 6.80-percent Senior Notes due November
15, 2015 (CUSIP No. 196522AK2) (the 6.80- percent Notes). The
tender offers are subject to the terms and conditions set forth in
CIG's Offer to Purchase dated November 29, 2007 (the Offer to
Purchase). As set forth in the Offer to Purchase, the tender offers
for the 5.95-percent Notes and the 6.80-percent Notes were subject
to an aggregate cap of $125,000,000 (the Tender Cap), with the
5.95-percent Notes having the first acceptance priority level and
the 6.80-percent Notes having the second acceptance priority level.
As of 5 p.m. Eastern Time on December 12, 2007, which is referred
to in the Offer to Purchase as the "Early Tender Date,"
$183,525,000 principal amount of the 5.95-percent Notes had been
validly tendered and not validly withdrawn. Because this amount
exceeds the Tender Cap, no 6.80-percent Notes will be accepted for
purchase, and CIG is terminating the tender offer with respect to
the 6.80-percent Notes. Any tendered 6.80-percent Notes will be
returned promptly to the tendering holders in accordance with the
Offer to Purchase. Holders who validly tendered (and did not
validly withdraw) 5.95-percent Notes in the tender offer at or
prior to 5 p.m. Eastern Time on December 12, 2007, will receive
$1,019.73 per $1,000 principal amount of the 5.95-percent Notes
accepted for purchase, which is referred to in the Offer to
Purchase as the "Full Tender Offer Consideration." In addition to
the Full Tender Offer Consideration stated above, holders whose
5.95-percent Notes are accepted for purchase will also receive any
accrued and unpaid interest from the last interest payment date for
the 5.95-percent Notes to, but not including, the settlement date,
which CIG expects will occur on December 28, 2007. Holders who
validly tender 5.95-percent Notes in the tender offer after 5 p.m.
Eastern Time on December 12, 2007, and at or prior to 12 midnight
Eastern Time on December 27, 2007 (the Expiration Date), will
receive the Full Tender Offer Consideration identified above minus
the early tender premium of $30.00 per $1,000 principal amount,
which is referred to in the Offer to Purchase as the "Late Tender
Offer Consideration," plus any accrued and unpaid interest from the
last interest payment date for the 5.95-percent Notes to, but not
including, the settlement date. The consideration to be paid in
connection with the tender offer was determined by Merrill Lynch
& Co. and J.P. Morgan Securities Inc., the dealer managers for
the tender offer, as of 2 p.m. Eastern Time on December 12, 2007,
as set forth in the Offer to Purchase. As set forth in the Offer to
Purchase, the aggregate amount of 5.95-percent Notes that is
purchased in the tender offer is subject to the Tender Cap and will
be prorated to the extent that the aggregate principal amount of
5.95-percent Notes validly tendered and not validly withdrawn as of
the Expiration Date exceeds the Tender Cap. CIG has retained
Merrill Lynch & Co. and J.P. Morgan Securities Inc. to serve as
the dealer managers for the tender offer and has retained Global
Bondholder Services Corporation to serve as the depositary and
information agent for the tender offer. Requests for documents may
be directed to Global Bondholder Services Corporation by telephone
at (866) 952-2200 or (212) 430-3774 or in writing at 65 Broadway,
Suite 723, New York, NY 10006. Questions regarding the tender offer
may be directed to Merrill Lynch & Co. at (888) 654-8637 or
(212) 449-4914 or J.P. Morgan Securities Inc. at (866) 834-4666 or
(212) 834-4802. This press release is neither an offer to purchase
nor a solicitation of an offer to sell the notes or any other
securities. The tender offer is made only by and pursuant to the
terms of the Offer to Purchase and the related letter of
transmittal. None of CIG, the dealer managers or the depositary and
information agent makes any recommendations as to whether holders
should tender their notes pursuant to the tender offer. Holders
must make their own decisions as to whether to tender notes, and,
if so, the principal amount of notes to tender. CIG is a Delaware
general partnership, originally formed as a corporation in 1927,
and a majority owned subsidiary of El Paso Corporation. Its primary
business consists of the interstate transportation, storage and
processing of natural gas. CIG conducts its business activities
through its Colorado Interstate gas system, its 50% equity interest
in WYCO Development LLC, and gas storage and processing facilities.
El Paso Corporation provides natural gas and related energy
products in a safe, efficient, dependable manner. El Paso
Corporation owns North America's largest interstate natural gas
pipeline system and one of North America's largest independent
natural gas producers. For more information, visit
http://www.elpaso.com/. Cautionary Statement Regarding
Forward-Looking Statements This release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All forward-looking statements are based on
assumptions that CIG believes to be reasonable. However, actual
results almost always vary from assumed facts and the differences
can be material, depending upon the circumstances. As a result, you
should not place undue reliance on such forward-looking statements.
The words "believe," "expect," "estimate," "anticipate" and similar
expressions will generally identify forward-looking statements. All
of CIG's forward-looking statements, whether written or oral, are
expressly qualified by these cautionary statements and any other
cautionary statements that may accompany such forward-looking
statements. In addition, CIG disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date of this release. With this in mind, you should consider
the risks discussed in the Offer to Purchase, under the caption
"Risk Factors" in CIG's Annual and Quarterly Reports on Forms 10-K
and 10-Q and in the other documents CIG files with the SEC from
time to time, which could cause actual results to differ materially
from those expressed in any forward-looking statement made by CIG
or on CIG's behalf. DATASOURCE: El Paso Corporation CONTACT:
Investor-Media Relations, Bruce L. Connery, Vice President,
+1-713-420-5855, Fax, +1-713-420-4417, or Media Relations, Bill
Baerg, Manager, +1-713-420-2906, Fax, +1-713-420-4417, both of El
Paso Corporation Web site: http://www.elpaso.com/
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