HOUSTON, TX , 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 to purchase up to $100 million aggregate principal amount (as
it may be increased, the Tender Cap) of its 5.95% Senior Notes due
March 15, 2015 (CUSIP No. 193522AH9) (the 5.95% Notes), and its
6.80% Senior Notes due November 15, 2015 (CUSIP No. 196522AK2) (the
6.80% Notes). The tender offer is subject to the terms and
conditions set forth in CIG's Offer to Purchase dated May 23, 2008
(the Offer to Purchase).
Holders who validly tendered (and did not validly withdraw)
notes in the tender offer at or prior to 5 p.m. Eastern Time on
June 6, 2008, which is the early tender date, will receive
$1,001.38 per $1,000 principal amount of 5.95% Notes accepted for
purchase and $1,051.82 per $1,000 principal amount of 6.80% Notes
accepted for purchase, which is referred to in the Offer to
Purchase as the Full Tender Offer Consideration. In addition to the
applicable Full Tender Offer Consideration stated above, holders
whose notes are accepted for purchase will also receive any accrued
and unpaid interest from the last interest payment date for the
notes to, but not including, the applicable settlement date.
As of 5 p.m. Eastern Time on June 6, 2008, $40,007,000 principal
amount of 5.95% Notes and $201,758,000 principal amount of 6.80%
Notes had been validly tendered and not validly withdrawn. CIG
expects to purchase all of the 5.95% Notes tendered at or prior to
the early tender date on June 9, 2008, the initial settlement date
for the 5.95% Notes. Any 5.95% Notes tendered after the early
tender date and accepted for purchase, and any 6.80% Notes accepted
for purchase, will be purchased on the final settlement date, which
CIG expects will occur on June 23, 2008.
Holders who validly tender notes in the tender offer after 5
p.m. Eastern Time on June 6, 2008, and at or prior to 12 midnight
Eastern time on June 20, 2008, which is the expiration date of the
tender offer, will receive the applicable 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 notes to, but not including, the applicable 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 June 6, 2008, as set forth in the Offer to
Purchase.
As set forth in the Offer to Purchase, the amount of a series of
notes that is purchased in the tender offer will be based on the
acceptance priority level for such series and may be prorated. The
5.95% Notes, which are in the first acceptance priority level, will
be purchased before the 6.80% Notes, which are in the second
acceptance priority level. CIG may increase the Tender Cap, subject
to and in accordance with applicable law, without extending
withdrawal rights. If the aggregate principal amount of 6.80% Notes
tendered exceeds the amount of the Tender Cap remaining available
for application to such series, then, if CIG accepts notes of such
series for purchase, CIG will accept such notes on a pro rata
basis.
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. CIG is owned 90 percent by a wholly owned
subsidiary of El Paso Corporation (El Paso) and 10 percent by a
wholly owned subsidiary of El Paso Pipeline Partners, L.P. (NYSE:
EPB). CIG's 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.
Contacts Investor and Media Relations Bruce L. Connery Vice
President Office: (713) 420-5855 Media Relations Bill Baerg Manager
Office: (713) 420-2906
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