New Issue: El Paso Production $1.2 billion 10-year notes yield 7¾%

By Paul A. Harris

St. Louis, May 20 - El Paso Production Holding Co. sold $1.2 billion of senior notes due June 1, 2013 (B+) at par Tuesday to yield 7¾%, according to a syndicate source.

Price talk was 7½%-7¾%.

Credit Suisse First Boston and Citigroup were joint bookrunners for the Rule 144A deal. The co-managers were Banc of America Securities, Deutsche Bank Securities Inc., Lehman Brothers and Scotia Capital.

Proceeds will be used to repay $1.2 billion of intercompany obligation to El Paso incurred in retirement of the Trinity River financing.

Issuer:	El Paso Production Holding Co.
Amount:	$1.2 billion
Maturity:	June 1, 2013
Security description:	Senior notes
Bookrunners:	Credit Suisse First Boston, Citigroup (joint)
Co-managers:	Banc of America Securities, Deutsche Bank Securities, Lehman Brothers, Scotia Capital
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	432 basis points over 3 5/8% Treasury due May 2013
Call Features:	Callable on June 1, 2008 at 103.875, then at 102.583, 101.292, declining to par on June 1, 2011 and thereafter
Equity clawback:	Until June 1, 2006 for 35% at 107.750
Settlement date:	May 23, 2003 (T+3)
Ratings:	Standard & Poor's: B+
Rule 144A Cusip:	283703AA4
Price talk:	7½%-7¾%

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