El Paso to launch $750 million to $1 billion term loan

By Sara Rosenberg

New York, Oct. 25 - El Paso Corp. is scheduled to launch its proposed term loan in a bank meeting Thursday. The loan will be sized anywhere from $750 million to $1 billion, not $1.25 billion as was previously expected by some market sources.

Citigroup and JPMorgan are the lead banks on the term loan, with Citigroup acting as left lead.

Price talk on the term loan is Libor plus 325 to 350 basis points, a market source told Prospect News.

Details on final size determination on the term loan are unavailable at this time, the source added.

The Houston-based energy company is already in-market with a $1.75 billion revolving credit facility talked at Libor plus 350 basis points. The revolver launched Oct. 14. JPMorgan and Citigroup are the lead banks on the revolver, with JPMorgan acting as left lead.

Proceeds from the revolver and term loan are expected to be used to refinance the company's existing $2.5 billion revolver, which currently bears interest at Libor plus 350 basis points and carries a 75 basis point commitment fee, sources said.

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