El Paso seeks amendment, extending maturity, increasing fees, adding collateral, changing covenants

By Sara Rosenberg

New York, March 31 - El Paso Corp. is currently in negotiations to amend its $3 billion 364-day revolver, which would extend the maturity date, increase the unused commitment fee and margin, add collateral to support the loan, and add and amend financial ratios and covenants, according to a filing with the Securities and Exchange Commission.

Furthermore, the company is seeking to amend its $1 billion multi-year facility, which would match the amended revolver, except for the commitment amount, the lender group and the maturity.

The 364-day revolver matures in May of this year and provides that outstanding amounts are not due until May 2004.

Historically, the company has used commercial paper programs to manage short-term cash requirements. However, due to the company's credit downgrade, commercial paper is currently not being used for liquidity needs, according to the filing.

El Paso is a Houston provider of natural gas services.

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