Tennessee Gas Pipeline gets needed consents, El Paso Tennessee Pipeline doesn't

By Angela McDaniels

Tacoma, Wash., July 21 - Tennessee Gas Pipeline Co. said it received consents for 84.39% of its 6% debentures due 2011 during a consent solicitation that expired at 5 p.m. ET on Friday.

Holders who consented will receive $2.50 for each $1,000 principal amount of notes.

El Paso Tennessee Pipeline Co., however, did not receive enough consents to amend the indentures of its 9% debentures due 2012 and 7¼% debentures due 2025. The consent solicitation for these debentures will not be extended, according to a company news release.

The companies began soliciting consents on July 9 to amend the indentures to allow each company to convert to a non-corporate legal entity, such as a general partnership, limited partnership or limited liability company.

Tennessee Gas Pipeline will amend the indenture for its 6% debentures so that the covenants related to the preservation of its corporate existence and consolidation, merger and sale of assets will not prohibit the company from conducting a statutory conversion to a non-corporate legal entity.

Merrill Lynch & Co. (888 654-8637 or 212 449-4914) and JPMorgan (866 834-4666 or 212 834-4802) were the solicitation agents. Global Bondholder Services Corp. (866 952-2200 or 212 430-3774) was the information agent and tabulation agent.

Tennessee Gas Pipeline and El Paso Tennessee Pipeline are Delaware corporations and subsidiaries of Houston-based natural gas company El Paso Corp.

Tennessee Gas Pipeline's primary business consists of the interstate transportation and storage of natural gas. El Paso Tennessee Pipeline is the holding company for Tennessee Gas Pipeline, for El Paso's marketing business segment and for El Paso's power business segment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.