El Paso Corporation Successfully Prices $500 Million of 8.25% Senior Notes Due 2016
February 04 2009 - 4:55PM
Marketwired
El Paso Corporation (NYSE: EP) announced today that it has priced
its public offering, which was substantially oversubscribed, of
$500 million of senior notes due February 15, 2016 with a coupon of
8.25%, issued at a discount generating a yield of 9.125%. El Paso
expects closing to occur on February 9, 2009. The notes are being
offered under El Paso's shelf registration statement.
Net proceeds from the offering will be approximately $472.5
million. El Paso plans to use the net proceeds from the sale of
these notes, together with the $438 million of net proceeds from El
Paso's December 2008 offering of 12.000% notes, for general
corporate purposes, including the repayment of debt maturing during
2009. 2009 maturities include 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. El Paso repaid $112 million aggregate
principal amount of its 6.375% notes due February 1, 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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