Southern Natural Gas Company Announces Expiration and Final Results of Its Cash Tender Offer to Purchase up to $189 Million Aggr
June 23 2008 - 9:57AM
Marketwired
HOUSTON, TX , a majority owned subsidiary of El Paso Corporation
(NYSE: EP), announced the expiration and final results of its
previously announced cash tender offer to purchase up to $189
million aggregate principal amount (the Tender Cap) of its 7.35%
Notes due February 15, 2031(CUSIP No. 843452AY9) (the 7.35% Notes)
and 8.0% Notes due March 1, 2032 (CUSIP No. 843452AZ6) (the 8.0%
Notes). The tender offer expired at 12 midnight, Eastern Time, on
June 20, 2008. $146,720,000 in aggregate principal amount of 7.35%
Notes and $54,713,000 in aggregate principal amount of 8.0% Notes
were validly tendered in the tender offer. Because the aggregate
principal amount of 8.0% Notes tendered exceeded the amount of the
Tender Cap remaining available for application to such series, the
amount of 8.0% Notes accepted for purchase was prorated among
tendering holders in accordance with the terms of the Offer to
Purchase dated May 23, 2008. The proration factor applied was
approximately 77.3-percent (rounded down to the nearest $1,000 of
principal amount for each tendering holder). SNG expects settlement
of the tender offer to occur today.
Merrill Lynch & Co. and J.P. Morgan Securities Inc. served
as the dealer managers for the tender offer and Global Bondholders
Services Corporation served as the depositary and information agent
for the tender offer.
SNG is a Delaware general partnership, originally formed as a
corporation in 1935. SNG 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). SNG's primary business consists of the interstate
transportation and storage of natural gas. SNG conducts its
business activities through its Southern Natural Gas pipeline
system and related storage 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 SNG
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 SNG'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, SNG 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 SNG's
Annual and Quarterly Reports on Forms 10-K and 10-Q and in the
other documents SNG 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 SNG or on SNG'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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