By Angela McDaniels
Tacoma, Wash., Aug. 10 - El Paso Corp. said it received tenders for $1,042,546,000 of notes during tender offers for 10 series of senior notes and accepted $653.41 million for purchase.
The tender offers began on July 13 and ended at 11:59 p.m. ET on Aug. 9. The early tender date was 5 p.m. ET on July 26.
The company offered to purchase any and all of seven series of notes. The eligible notes, the amounts tendered and the purchase prices are noted in the table below.
The prices noted below include an early tender payment of 3% of par for notes tendered by the early tender date. Holders will also receive accrued interest up to but excluding the settlement date.
The notes tendered by the early tender date were settled on July 29. The remaining notes will be settled on Aug. 11.
Dutch auction offer
The company also offered to purchase three series of notes through a Dutch auction offer. The eligible notes, the amounts tendered, the amounts accepted and the purchase prices are noted in the table.
The prices noted below include an early tender payment of 3% of par for notes tendered by the early tender date. Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be Aug. 11.
The purchase price consists of a base price per $1,000 principal amount of notes plus a 2.75% clearing premium, which was determined through a modified Dutch auction.
The acceptable bid price range was 111.5 to 114.5 for the 6 7/8% notes and 113.5 to 116.5 for the 7% notes and 7¼% notes. These ranges represent the minimum bid price plus a bid premium of up to 3% of par. They also include the early tender payment.
The maximum amount spent to purchase these notes, excluding accrued interest, is capped at $437,422,200, which is $750 million minus the amount paid for the notes purchased in the any and all offer.
Because the amount of notes tendered would cause the company to exceed this cap, the company first accepted all Dutch auction notes tendered at a bid premium less than the clearing premium and then notes tendered with a bid premium equal to the clearing premium on a prorated basis using a single proration factor of 27.01% across all series.
The dealer managers were Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527). The depositary and information agent is Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 952-2200).
El Paso is a Houston-based natural gas provider.
EL Paso any and all tender offer
Notes Amount tendered Price
$570,000 of 9 5/8% senior debentures due 2012 $25,000 107
$27,583,000 of 9 5/8% senior notes due 2012 $16.04 million 107
$67,876,000 of 8¼% senior notes due 2016 $610,000 114
$896,000 of 6.95% senior debentures due 2028 $525,000 112.5
$173,534,000 of 6.95% senior notes due 2028 $143,145,000 112.5
$236,000 of 7.42% senior debentures due 2037 $50,000 117
$160,218,000 of 7.42% senior notes due 2037 $113.69 million 117
Total $274,085,000
El Paso Dutch auction tender offer
| Notes | Tendered | Accepted | Price
|
| $375 million of 6 | 7/8% senior notes due 2014 | $231,622,000 | $167,623,000 | 114.25
|
| $900 million of 7% senior notes due 2017 | $304,246,000 | $113.83 million | 116.25
|
| $575 million of 7¼% senior notes due 2018 | $232,611,000 | $97,872,000 | 116.25
|
| Total | $768,479,000 | $379,325,000
|
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