El Paso offers stock, cash for 9% mandatory convertibles

New York, Oct. 24 - El Paso Corp. announced an offer to exchange all its 9% equity security units for stock and cash.

The Houston energy company said it is offering 2.5063 shares of common stock and $9.70 per $50 par unit.

The number of shares on offer in the exchange is the same as holders would receive if they exercise the conversion option - the cash is additional.

El Paso said the exchange offer is "part of its ongoing strategy to reduce debt and increase its financial flexibility."

The exchange is conditional on at least 5.75 million units, equivalent to $287.5 million or 50% of the outstanding units being validly tendered. There are currently 11.5 million or $575 million outstanding. El Paso originally issued them in June 2002.

El Paso's 9% units closed at $29.10 in New York Stock Exchange trading Friday, up $0.70. El Paso stock closed at $7.25.

The exchange runs through 5.00 p.m. ET on Nov. 25.

Full details at:

http://www.sec.gov/Archives/edgar/data/1066107/000095012903005122/h08231exv99wa1wa.txt

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