By Paul A. Harris
St. Louis, June 28 - El Paso Corp. remarketed $272.1 million of its 6.14% senior notes due Aug. 16, 2007 (Caal/B-) on Tuesday, according to company and market sources.
The coupon was reset to 7 5/8% at a remarket price of 101.71 resulting in a 7.205% yield to maturity.
The deal was talked in a range of 7 5/8% at 101.714 to yield 7.203% to 7 7/8% at 101.714 to yield 7.465%, and the notes priced near the tight end of the range.
Credit Suisse First Boston ran the books for the Rule 144A/Regulation S transaction, which has registration rights.
Proceeds will be used to facilitate issuance of El Paso stock in 2005 pursuant to terms of the company's 9% mandatory convertible securities issued in June 2002.
None of the proceeds from the bond remarketing will go to El Paso Corp.
The issuer is a Houston-based diversified oil and gas utility.
| Issuer: | El Paso Corp.
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| Amount: | $272.1 million
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| Maturity: | Aug. 16, 2007
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| Security description: | Senior notes
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| Bookrunner: | Credit Suisse First Boston
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| Original coupon: | 6.14%
|
| Coupon reset: | 7 5/8%
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| Remarket price: | 101.71
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| Remarket yield: | 7.205%
|
| Spread: | 363 basis points
|
| Trade date: | June 28
|
| Settlement date: | July 1 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | Ranging from 7 5/8% at 101.714 to yield 7.203% to 7 7/8% at 101.714 to yield 7.465%
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