El Paso to price $500 million 10-year notes Thursday via Deutsche Bank

By Paul A. Harris

St. Louis, May 21 - El Paso Corp. plans to sell $500 million of 10-year senior notes (expected ratings Ba3/BB-/) on Thursday, according to a syndicate source.

Deutsche Bank Securities, Goldman Sachs & Co. and J.P. Morgan Securities Inc. are joint bookrunners for the public offering. Banc of America Securities LLC, Credit Suisse, RBS Greenwich Capital, Scotia Capital and SG Corporate & Investment Banking are co-managers.

The notes will be non-callable and will feature a Treasuries plus 50 basis points make-whole provision.

Proceeds will be used for general corporate purposes, including the repayment of debt maturing during the remainder of 2008. Pending the use of the proceeds for other purposes, El Paso intends to pay down the revolver debt of subsidiary El Paso Exploration & Production Co.

The prospective issuer is a Houston natural gas company.

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