El Paso Energy Partners $200 million add-on to price Tuesday

By Paul A. Harris

St. Louis, Mo., May 13 - El Paso Energy Partners is expected to price a drive-by $200 million add-on to its 8½% senior subordinated notes due July 1, 2011 (B1/B-) on Tuesday, according to a market source.

Price talk is 102-102.50, according to the source.

The syndicate includes Credit Suisse First Boston, Goldman Sachs & Co., JP Morgan, Banc One Capital Markets, Wachovia Securities, Fleet Securities, Fortis, BNP Paribas and RBS.

The Rule 144A notes are callable on June 1, 2006 at 104.25, in 2007 at 102.833, in 2008 at 101.417, and at par on June 1, 2009 and thereafter. They also contain an equity clawback of three years for 33.33% at 108.50.

Proceeds will be used to repay bank debt incurred in funding the acquisition of assets in Texas and New Mexico from El Paso Corp.

The company is a Houston-based natural gas producer and distributor.

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