El Paso to exchange, solicit consents for subsidiary El Paso CGP notes

By Jennifer Chiou

New York, Dec. 5 - El Paso Corp. said it started a private offer to exchange all the notes issued by subsidiary El Paso CGP Co. (The Coastal Corp.).

El Paso said it is also soliciting consents to amend notes' indentures.

The exchange price for each CGP note will be 100% of its principal amount if it is tendered prior to 5 p.m. ET on Dec. 15, the consent deadline, and 95% of its principal amount after that time and before the expiration of the offer at 11:59 p.m. ET on Dec. 30, unless extended.

The Houston-based natural gas and energy company said it will issue a new El Paso note in a principal amount equal to the exchange price for validly tendered and accepted CGP notes.

For each $1,000 principal amount of notes, El Paso CGP said it will also make a consent payment of $1.25 for its $109.5 million of 6½% notes due 2006, $1.25 for its $204.91 million of 7½% notes due 2006, $2.50 for its $200 million of 6½% senior debentures due June 1, 2008, $2.50 for its $215 million of 7 5/8% notes due 2008, $2.50 for its $200 million of 6 3/8% senior debentures due Feb. 1, 2009, $2.50 for its $400 million of 7¾% notes due 2010, $2.50 for its $56.573 million of 10¾% senior debentures due Oct. 1, 2010, $2.50 for its $150 million of 9 5/8% senior debentures due May 15, 2012, $2.50 for its $200 million of 6.7% senior debentures due Feb. 15, 2027, $2.50 for its $200 million of 6.95% senior debentures due June 1, 2028, $2.50 for its $150 million of 7¾% senior debentures due Oct. 15, 2035 and $2.50 for its $200 million of 7.42% senior debentures due Feb. 15, 2037.

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