By Paul A. Harris
St. Louis, Feb. 28 - Southern Natural Gas Co. and ANR Pipeline Co., both subsidiaries of The El Paso Corp., priced $700 million of 8 7/8% senior notes due March 15, 2010 (B1/B+) at 98.718 to yield 9 1/8%, on Friday, according to a syndicate source.
Price talk was 9 1/8%-9 3/8% on both deals.
Salomon Smith Barney and Credit Suisse First Boston were joint bookrunners on both offerings. ABN Amro, Bank of America, BNP Paribas and JP Morgan were co-managers.
Southern Natural Gas Co. priced $400 million of notes, with $95 million of the proceeds earmarked for general corporate purposes and the remainder to pay a dividend to El Paso Corp.
ANR Pipeline priced $300 million of notes, with proceeds to be used to retire payables to affiliates and $25 million retained for general corporate purposes.
Issuer: Southern Natural Gas Co.
Face amount: | $400 million
|
Rule 144A Cusip: | 8433452BA0
|
|
Issuer: | ANR Pipeline Co.
|
Face Amount: | $300 million
|
Rule 144A Cusip: | 001814AU6
|
|
Terms for both issues:
|
Maturity: | March 15, 2010
|
Security description: | Senior notes
|
Bookrunners: | Salomon Smith Barney, Credit Suisse First Boston
|
Co-managers: | ABN Amro, Bank of America, BNP Paribas, JP Morgan
|
Coupon: | 8 7/8%
|
Price: | 98.718
|
Yield: | 9 1/8%
|
Spread: | 591 basis points
|
Call features: | Callable on March 15, 2007 at 104.438, then at 102.219, declining to par on March 15, 2009 and thereafter
|
Equity clawback: | None
|
Settlement date: | March 5, 2003 (T+3)
|
Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
Price talk: | 9 1/8%-9 3/8%
|
|
© 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.