El Paso extends, amends consent solicitation for El Paso CGP notes and debentures

New York, Dec. 22 - El Paso Corp. said it has amended and extended its exchange offer for subsidiary El Paso CGP Co.'s (The Coastal Corp.) notes and debentures.

The offer now ends at 11:59 p.m. ET on Jan. 6 instead of 11:59 p.m. ET on Dec. 30.

The consent deadline will now match the end of the exchange for all series of notes and all holders who tender will receive the full amount.

In addition, the 7¾% senior debentures due Oct. 15, 2035 will now be exchanged for new notes that are the same as El Paso's existing 7¾% medium-term notes due Jan. 15, 2032 except that the new notes will be subject to the same restrictions on transfer as the other debt to be issued in the exchange.

El Paso said it expects to make the consent payments on Dec. 27 for consents delivered by 12 p.m. ET on that day. New notes will be issued on Dec. 28.

The response has not changed from Dec. 21, El Paso added.

At its previous announcement on Dec. 20, El Paso said it extended the consent deadline to 5 p.m. ET on Dec. 20 from 5 p.m. ET on Dec. 15 for the 7¾% senior debentures due Oct. 15, 2035. The company has not received consents for the 7¾% debentures.

On Dec. 16, El Paso said it received consents from holders of $1.9101 billion of El Paso CGP's notes, including:

• $91.86 million or 83.89% of its $109.5 million of 6½% notes due 2006;

• $182.525 million or 89.08% of its $204.91 million of 7½% notes due 2006;

• $188.682 million or 94.34% of its $200 million of 6½% senior debentures due June 1, 2008;

• $206.596 million or 96.09% of its $215 million of 7 5/8% notes due 2008;

• $189.443 million or 94.72% of its $200 million of 6 3/8% senior debentures due Feb. 1, 2009;

• $369.729 million or 92.43% of its $400 million of 7¾% notes due 2010;

• $39.755 million or 70.27% of its $56.573 million of 10¾% senior debentures due Oct. 1, 2010;

• $136.118 million or 90.75% of its $150 million of 9 5/8% senior debentures due May 15, 2012;

• $161.913 million or 80.96% of its $200 million of 6.7% senior debentures due Feb. 15, 2027;

• $188.08 million or 94.04% of its $200 million of 6.95% senior debentures due June 1, 2028; and

• $155.448 million or 77.72% of its $200 million of 7.42% senior debentures due Feb. 15, 2037.

El Paso, which started the offer on Dec. 5, is soliciting consents to amend the notes' indentures.

As originally announced, the exchange price for each CGP note was initially 100% of its principal amount if it is tendered anytime before the offer's expiration at 11:59 p.m. ET on Dec. 30, unless extended. Previously, the exchange price was 100% of its principal amount if it was tendered prior to the consent deadline, and 95% of its principal amount after that time and before the expiration of the offer.

The Houston-based natural gas and energy company said it will issue a new El Paso note in a principal amount equal to the exchange price for validly tendered and accepted CGP notes.

For each $1,000 principal amount of notes, El Paso CGP said it will also make a consent payment of $1.25 for its 6½% notes, $1.25 for its 7½% notes, $2.50 for its 6½% senior debentures, $2.50 for its 7 5/8% notes, $2.50 for its 6 3/8% senior debentures, $2.50 for its 7¾% notes, $2.50 for its 10¾% senior debentures, $2.50 for its 9 5/8% senior debentures, $2.50 for its 6.7% senior debentures, $2.50 for its 6.95% senior debentures, $2.50 for its $150 million of 7¾% senior debentures and $2.50 for its $200 million of 7.42% senior debentures.

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