El Paso Corporation Successfully Prices $500 Million of 12.000% Senior Notes Due 2013
December 09 2008 - 4:24PM
Marketwired
El Paso Corporation (NYSE: EP) announced today that it has priced
its public offering of $500 million of senior notes due December
12, 2013 with a coupon of 12.000%, issued at a discount generating
a yield of 15.250%. El Paso expects closing to occur on December
12, 2008. The notes are being offered under El Paso's shelf
registration statement.
"Today's successful debt offering demonstrates El Paso's
strength and ability to access the capital markets, even in these
turbulent times," said Doug Foshee, president and chief executive
officer of El Paso Corporation. "We are pleased with this important
step in our progress towards meeting the company's 2009 capital
needs."
Net proceeds from the offering will be approximately $438
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 2009. 2009 maturities include approximately
$112 million of El Paso's 6.375% notes due February 1, 2009;
approximately $539 million of El Paso's 7.125% notes due May 6,
2009; and $413 million of El Paso's 6.75% notes due May 15,
2009.
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.
El Paso's offering is being made only by means of a prospectus
and related prospectus supplement, a copy of which may be obtained
from Morgan Stanley at prospectus@morganstanley.com or
1-866-718-1649.
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 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. 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 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 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 Media Relations Bruce L. Connery Vice
President Office: (713) 420-5855 Media Relations Bill Baerg Manager
Office: (713) 420-2906
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