El Paso Exploration delays pricing in tender offer for 7¾% notes

By Laura Lutz

Des Moines, June 11 - El Paso Corp. said its El Paso Exploration & Production Co. subsidiary delayed the pricing date in its tender offer for all of its 7¾% senior notes due 2013.

Pricing will now be set at 2 p.m. ET on June 12, pushed back from June 11.

As of May 29, there was $1.2 billion principal amount of the notes outstanding.

The company is also soliciting consents to amend the note indenture.

The consent deadline was 5 p.m. ET on June 11. The tender offer will expire at midnight ET on June 25.

For each $1,000 principal amount of notes, the company said it will determine its payout using a fixed spread of 50 basis points over the yield based on the bid-side price of the 4 7/8% Treasury note due May 31, 2008. The payout will include a $20.00 premium for those who tender by the early deadline.

Noteholders will also receive accrued interest up to but excluding the settlement date.

The offer is conditioned on the receipt of tenders from holders of a majority of notes, the execution of a supplemental indenture, the adoption of amendments to the company's revolving credit agreement and the completion of the sale of new notes.

Global Bondholder Services Corp. is the information agent (866 294-2200 or collect 212 430-3774). Citi (800 558-3745 or collect 212 723-6106) and Deutsche Bank Securities Inc. (866 627-0391 or collect 212 250-2955) are the dealer managers.

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

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