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El Paso Exploration & Production accepts tenders for $1.199 billion 7¾% notes
By Jennifer Chiou
New York, June 27 - El Paso Exploration & Production Co. said it accepted $1,199,094,000 of notes tendered in the offer for its $1.2 billion of 7¾% senior notes due 2013.
The offer ended at midnight ET on June 26.
El Paso said it settled $1,196,828,000 of the notes tendered by the early deadline on June 19.
The company said it paid $1,056.59 per $1,000 principal amount of notes plus accrued interest to the settlement date.
The tender consideration included a consent fee of $20.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on June 11, the consent deadline.
The tender consideration was determined on June 13 using the yield of the 4 7/8% U.S. Treasury note due May 31, 2008 plus 50 basis points.
In a previous news release, the company said the tender offer was part of its ongoing efforts to reduce costs and simplify its covenant requirements.
The tender offer and consent solicitation were conditioned on the receipt of tenders from holders of a majority of the notes, the execution of a supplemental indenture amending the note indenture, the adoption of amendments to the company's revolving credit agreement and the completion of the sale of new notes by parent company El Paso Corp.
Global Bondholder Services Corp. (866 294-2200 or call collect 212 430-3774) was the information agent. Citi (800 558-3745 or call collect 212 723-6106) and Deutsche Bank Securities Inc. (866 627-0391 or call collect 212 250-2955) were the dealer managers.
El Paso Exploration locates, acquires, develops and produces natural gas, oil and natural gas liquids. It is a subsidiary of El Paso Corp., a Houston-based provider of natural gas and related products.
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