El Paso Corporation Obtains $300 Million Secured Revolving Credit Facility
December 30 2008 - 5:43PM
Marketwired
El Paso Corporation (NYSE: EP) announced today that its wholly
owned subsidiary, El Paso Exploration & Production Company, and
certain of its subsidiaries have obtained a 364-day borrowing base
facility that is collateralized by an estimated 0.4 trillion cubic
feet equivalent of proved natural gas and oil reserves. The
facility will be effective December 30, 2008. The facility is
available for general corporate purposes. El Paso Exploration &
Production Company has no current plans to draw upon it.
"The new facility provides El Paso with additional liquidity so
that we can meet any potential future challenges during these
turbulent times," said Mark Leland, chief financial officer of El
Paso Corporation. Today's announcement follows a December 9, 2008
debt offering, which provided $438 million of net cash
proceeds.
The floating rate facility is supported by a group of commercial
banks, and has a borrowing cost of LIBOR plus 3.50 percent.
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 certain forward-looking statements. All
forward-looking statements are based on assumptions that El Paso
believes to be reasonable. However, a variety of factors could
cause actual results to differ materially from the projections,
anticipated results or other expectations expressed in this
release, including, without limitation, our ability to meet our
2009 debt maturities; volatility in, and access to, the capital
markets; our ability to comply with the covenants in our various
financing documents; actions by the credit rating agencies; the
successful close of our financing transactions; credit and
performance risk of our lenders, trading counterparties, customers,
vendors and suppliers; changes in commodity prices and basis
differentials for oil, natural gas, and power; our ability to
obtain targeted cost savings in our businesses; general economic
and weather conditions in geographic regions or markets served by
the company and its affiliates, or where operations of the company
and its affiliates are located, including the risk of a global
recession and negative impact on natural gas demand; the
uncertainties associated with governmental regulation; political
and currency risks associated with international operations of the
company and its affiliates; competition; and other factors
described in the company's (and its affiliates') Securities and
Exchange Commission filings. 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 Susan Argue
Principal Office: (713) 420-1544
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