By Paul A. Harris
St. Louis, May 22 - El Paso Corp. priced an upsized $600 million issue of 10-year senior bullet notes (Ba3/BB-) at par to yield 7¼% on Thursday, according to an informed source.
The yield came at the wide end of the 7% to 7¼% price talk, according to the source, who added that the order book was well oversubscribed.
Deutsche Bank Securities, Goldman Sachs & Co. and JP Morgan were joint bookrunners for the public offering. Banc of America Securities, Credit Suisse, RBS Greenwich Capital, Scotia Capital and SG Corporate & Investment Banking were co-managers.
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 issuer is a Houston-based natural gas company.
| Issuer: | El Paso Corp.
|
| Amount: | $600 million (increased from $500 million)
|
| Maturity: | June 1, 2018
|
| Security description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities, Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Co-managers: | Banc of America Securities LLC, Credit Suisse, RBS Greenwich Capital, Scotia Capital, SG Corporate & Investment Banking
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 333 bps
|
| Call protection: | Non-callable apart from make-whole call at Treasuries plus 50 bps
|
| Trade date: | May 22
|
| Settlement date: | May 30
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Off shelf
|
| Price talk: | 7% to 7¼%
|
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