Colorado Interstate Gas tender offer for 5.95% notes oversubscribed

By Angela McDaniels

Tacoma, Wash., Dec. 28 - Colorado Interstate Gas Co. accepted for purchase $125 million of its 5.95% senior notes due March 15, 2015, according to a company news release.

A total of $183.53 million of notes were tendered under an offer that expired at midnight ET on Dec. 27.

When the tender offer began on Nov. 29, the company said it would purchase up to $125 million of notes. Accordingly, the notes were accepted on a pro rata basis, and the proration factor was 68.1%.

Colorado Interstate Gas will pay $1,019.73 per $1,000 principal amount of notes.

The payout includes an early tender premium of $30.00 for each note tendered by 5 p.m. ET on Dec. 12. Noteholders who tendered after that but before the offer expiration will receive $989.73 per $1,000 principal amount.

All noteholders who tendered will also receive accrued interest up to but excluding the settlement date, which is expected to be Dec. 28.

The payout was determined at 2 p.m. ET on Dec. 12 based on a fixed spread of 150 basis points over the bid-side yield of the 4¼% U.S. Treasury note due Nov. 15, 2017.

On Dec. 13, Colorado Interstate Gas terminated the related tender offer for its $400 million of 6.8% senior notes due Nov. 15, 2015. The company capped the tender offers at $125 million of notes and said it would accept all 5.95% notes tendered before it accepted any 6.8% notes.

As of the early tender deadline, holders had tendered $183.53 million of the 5.95% notes, according to a prior news release. As a result, no 6.8% notes were accepted.

Merrill Lynch & Co. (888 654-8637 or 212 449-4914) and JPMorgan (866 834-4666 or 212 834-4802) were the dealer managers. Global Bondholder Services Corp. (866 952-2200 or 212 430-3774) was the depositary and information agent.

Colorado Interstate Gas is a Delaware general partnership that transports, stores and processes natural gas. It is a subsidiary of El Paso Corp., which provides natural gas and related energy products and is based in Houston.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.