El Paso says 53% of 9% units tendered in exchange

New York, Dec. 24 - El Paso Corp. said holders of 6.058 million or 53% of its outstanding 9% equity security units tendered their convertibles by the time its exchange offer expired at 5 p.m. ET Dec. 23, based on preliminary results.

El Paso said it anticipates accepting all tendered units without pro ration.

Under the terms of the exchange, El Paso will issue 2.5063 shares of common stock and $9.70 in cash for each $50 par unit tendered.

El Paso originally announced the exchange on Oct. 24 and subsequently extended it several times.

El Paso had been offering to exchange up to all 10.35 million or 90% of its outstanding 10.5 million or $575 million units.

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 was conditional on at least 5.75 million units, equivalent to $287.5 million or 50% of the outstanding units, being validly tendered.

The exchange agent was The Bank of New York. The information agent was D.F. King & Co. Inc. (Banks and brokers call 212 269-5550, others call 800 431-9633).

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