By Paul A. Harris
St. Louis, March 2 - Colorado Interstate Gas Co. priced a $200 million issue of 10-year senior unsecured notes (existing B1/confirmed B-) at par to yield 5.95% in a quick-to-market transaction, according to a syndicate source.
The notes priced at a spread of 158 basis points, slightly wide of the mid-point of the Treasuries plus 150 to 162.5 basis points price talk.
Citigroup and Credit Suisse First Boston ran the books for the Rule 144A issue. The co-managers were BNP Paribas, Fortis, Scotia Capital and The Royal Bank of Scotland.
Proceeds will be used to repay $180 million of 10% senior debentures due June 15, 2005 and for general corporate purposes.
The Houston-based issuer, a subsidiary of El Paso Corp., owns and operates an interstate gas pipeline system and produces, purchases, stores and sells natural gas.
| Issuer: | Colorado Interstate Gas Co.
|
| Amount: | $200 million
|
| Maturity: | March 15, 2015
|
| Security description: | Senior unsecured notes
|
| Bookrunners: | Citigroup, Credit Suisse First Boston
|
| Co-managers: | BNP Paribas, Fortis, Scotia Capital, The Royal Bank of Scotland
|
| Coupon: | 5.95%
|
| Price: | Par
|
| Yield: | 5.95%
|
| Spread: | 158 basis points
|
| Call protection: | Make-whole call
|
| Trade date: | March 2
|
| Settlement date: | March 9
|
| Ratings: | Moody's: existing B1
|
| Standard & Poor's: B-
|
| Price talk: | Treasuries plus 150-162.5 basis points
|
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