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El Paso Exploration & Production prices tender for 7¾% notes
By Angela McDaniels
Seattle, June 14 - El Paso Exploration & Production Co. said it will pay $1,056.59 per $1,000 principal amount of its $1.2 billion of 7¾% senior notes due 2013 tendered plus accrued interest to the settlement date.
The tender consideration includes a consent fee of $20.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on June 11, the consent deadline.
The settlement date is expected to be June 19 for notes tendered by the consent deadline and June 27 for notes tendered after that but before midnight ET on June 26, the tender offer expiration.
The tender consideration was determined on June 13 using the yield of the 4 7/8% U.S. Treasury note due May 31, 2008 plus 50 basis points.
In a previous news release, the company said the tender offer is part of its ongoing efforts to reduce costs and simplify its covenant requirements.
The tender offer and consent solicitation are conditioned on the receipt of tenders from holders of a majority of the notes, the execution of a supplemental indenture amending the note indenture, the adoption of amendments to the company's revolving credit agreement and the completion of the sale of new notes by parent company El Paso Corp.
Global Bondholder Services Corp. (866 294-2200 or call collect 212 430-3774) is the information agent. Citi (800 558-3745 or call collect 212 723-6106) and Deutsche Bank Securities Inc. (866 627-0391 or call collect 212 250-2955) are the dealer managers.
El Paso Exploration locates, acquires, develops and produces natural gas, oil and natural gas liquids. It is a subsidiary of El Paso Corp., a Houston-based provider of natural gas and related products.
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