El Paso Corporation Announces Pricing of Public Offering of $600 Million of 7.25% Senior Notes Due 2018
May 22 2008 - 7:03PM
Marketwired
HOUSTON, TX (El Paso) announced today that it has priced its
pubic offering of $600 million of senior notes due June 1, 2018
with a coupon of 7.25%. El Paso expects closing to occur on May 30,
2008. The notes are being offered under El Paso's shelf
registration statement.
Net proceeds from the offering will be approximately $595
million. El Paso plans to use the net proceeds from the sale of the
notes for general corporate purposes, including the repayment of
debt maturing during the remainder of 2008. Pending the use of the
proceeds for other purposes, El Paso intends to apply the net
proceeds to reduce outstanding borrowings under El Paso's revolving
credit facility and under the revolving credit facility of El
Paso's subsidiary, El Paso Exploration & Production
Company.
Upon issuance, the notes will be senior unsecured obligations of
El Paso and will rank equally in right of payment with other
existing and future unsecured senior indebtedness of El Paso. The
notes will not be guaranteed by any of El Paso's subsidiaries or
unconsolidated affiliates.
The offering is being made only by means of a prospectus and
related prospectus supplement, a copy of which may be obtained from
Deutsche Bank Securities Inc. at 60 Wall Street, New York, New York
10005, (800) 503-4611.
This press release does not constitute an offer to sell or a
solicitation of any offer to buy such securities nor shall there be
any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
El Paso Corporation provides natural gas and related energy
products in a safe, efficient, and dependable manner. El Paso owns
North America's largest interstate natural gas pipeline system and
one of North America's largest independent natural gas
producers.
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 El
Paso 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 El Paso'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, El Paso 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 under
the caption "Risk Factors" in the offering memorandum, El Paso's
Annual and Quarterly Reports on Forms 10-K and 10-Q and in the
other documents El Paso 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 El Paso or on El
Paso's behalf.
Contacts Investor and Public Relations Bruce L. Connery Vice
President Office: (713) 420-5855 Media Relations Bill Baerg Manager
Office: (713) 420-2906
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