Two separate El Paso subsidiaries to price $700 million on Friday

By Paul A. Harris

St. Louis, Feb. 24 - Two separate subsidiaries of El Paso Corp. expect to price a combined total of $700 million of seven-year non-call-four Rule 144A high yield notes (B1/B+) on Friday, according to a syndicate source.

Southern Natural Gas will bring $400 million of senior notes, $95 million of which will be retained for general corporate purposes, and the remainder to be used to pay a dividend to El Paso.

ANR Pipeline Co. will bring $300 million, with proceeds designated to retire payables to affiliates, with $25 million going for general corporate purposes.

Salomon Smith Barney and Credit Suisse First Boston are joint bookrunners. ABN Amro, BNP Nesbitt Burns and JP Morgan are co-managers.

Roadshows on both offerings are set to commence on Tuesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.