El Paso accepts tenders for $301.3 million of 7 5/8% notes

By Jennifer Chiou

New York, April 19 - El Paso Corp. said its subsidiary, El Paso Natural Gas Co., accepted tenders from holders of $301.288 million, or 84.87%, of its $355 million of 7 5/8% notes due 2010.

As of 5 p.m. ET on April 4, the company had received tenders from holders of $298.510 million, or 84%, of the notes.

The tender offer ended at midnight ET on Wednesday.

For each $1,000 principal amount of notes, the company said it paid $1,043.73, which was determined using a fixed spread of 50 basis points over the yield based on the bid-side price of the 3 7/8% Treasury note due July 31, 2007. The payout included a $10.00 premium for those who tendered by the April 4, the consent deadline.

Pricing was set at 2 p.m. ET on April 4.

Noteholders also received accrued interest up to but excluding the settlement date, which was April 5 for notes tendered by the consent deadline and Thursday for notes tendered after the consent deadline.

The company added that it executed a supplemental indenture.

The offer was conditioned on the receipt of tenders from holders of a majority of notes, the execution of a supplemental indenture and the completion of the sale of new notes.

Citigroup Corporate and Investment Banking was the dealer manager (800 558-3745 or call collect 212 723-6106). Global Bondholder Services Corp. was the information agent (866 952-2200 or call collect 212 430-3774).

El Paso is a Houston-based provider of natural gas and related products.

© 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.