By Paul A. Harris
St. Louis, Mo., May 14 - El Paso Energy Partners LP upsized its drive-by deal to $230 million from $200 million and priced the add-on to its 8½% senior subordinated notes due June 1, 2011 (B1/BB-) at 102 for a yield to worst of 8.139%, according to a market source.
Credit Suisse First Boston was the bookrunner. Co-managers were Goldman Sachs & Co., JP Morgan, Banc One Capital Markets, Wachovia Securities, Fleet Securities, Fortis, BNP Paribas and RBS.
Proceeds will be used to repay bank debt incurred to acquire assets in Texas and New Mexico from El Paso Corp.
The natural gas producer and distributor is based in Houston. The original $250 million deal priced May 11, 2001.
Issuer: El Paso Energy Partners LP
Amount: $230 million (increased from $200 million)
Type: Add-on to 8½% senior subordinated notes due June 1, 2011
Manager: Credit Suisse First Boston
Coupon: 8½%
Price: 102
Yield to worst: 8.139% (to 2009 call)
Yield to maturity: 8.182%
Spread: 288 basis points over 5% Treasury due Aug. 15, 2011
Call features: Callable June 1, 2006 at 104.25, 102.833, 101.417, par on June 1, 2009 and thereafter
Equity clawback: Until June 1, 2004 for 33.33 at 108.50
Settlement date: May 17, 2002 flat
Ratings: Moody's: B1
| Standard & Poor's BB-
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| Rule Rule 144A CUSIP: | 28368QAD1
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| Price talk: | 102-102.50
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