New Issue: El Paso Energy Partners upsizes seven-year notes to $300 million, yields 8½%

By Paul A. Harris

St. Louis, March 19 - El Paso Energy Partners, LP priced an upsized drive-by offering of $300 million senior subordinated notes due June 1, 2010 (BB-) Wednesday at par to yield 8½%, according to a syndicate source.

Price talk was for a yield of 8½%-8¾%. The deal was increased from $250 million.

The syndicate was comprised of JP Morgan, Goldman Sachs & Co. and UBS Warburg.

Proceeds from the Rule 144A notes will be used to retire senior secured bank debt.

The Houston-based El Paso Corp. subsidiary operates oil and gas pipelines and platforms in the Gulf of Mexico.

Issuer: El Paso Energy Partners, LP

Amount:	$300 million (increased from $250 million)
Maturity:	June 1, 2010
Security description:	Senior subordinated notes
Managers:	JP Morgan, Goldman Sachs, UBS Warburg
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	498 basis points
Call features:	Callable on June 1, 2007 at 104.25, then 102.125, declining to par on June 1, 2009 and thereafter
Equity clawback:	Until June 1, 2006 for 33% at 108.50
Settlement date:	March 24, 2003
Ratings:	Standard & Poor's BB-
Distribution:	Rule 144A
Price talk:	8½%-8¾%

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