El Paso exchanges $2.04 billion of El Paso CGP notes and debentures in early settlement

New York, Dec. 29 - El Paso Corp. said it accepted $2.4 billion of the notes and debentures issued by subsidiary El Paso CGP Co.'s (The Coastal Corp.) for exchange in an early settlement of the offer.

Having achieved the necessary consents by 12 p.m. ET on Dec. 27, the company accepted those consents and entered into a supplemental indenture incorporating the changes. On Dec. 28 it paid the consent fees and issued new notes in exchange for the securities tendered by the consent deadline.

The response by the consent deadline was:

• $91.86 million or 83.89% of its $109.5 million of 6½% notes due 2006. The consent payment is $1.25 per $1,000 principal amount;

• $182.525 million or 89.08% of its $204.91 million of 7½% notes due 2006. The consent payment is $1.25 per $1,000 principal amount;

• $188.682 million or 94.34% of its $200 million of 6½% senior debentures due June 1, 2008. The consent payment is $2.50 per $1,000 principal amount;

• $206.596 million or 96.09% of its $215 million of 7 5/8% notes due 2008. The consent payment is $2.50 per $1,000 principal amount;

• $189.443 million or 94.72% of its $200 million of 6 3/8% senior debentures due Feb. 1, 2009. The consent payment is $2.50 per $1,000 principal amount;

• $369.729 million or 92.43% of its $400 million of 7¾% notes due 2010. The consent payment is $2.50 per $1,000 principal amount;

• $39.755 million or 70.27% of its $56.573 million of 10¾% senior debentures due Oct. 1, 2010. The consent payment is $2.50 per $1,000 principal amount;

• $136.118 million or 90.75% of its $150 million of 9 5/8% senior debentures due May 15, 2012. The consent payment is $2.50 per $1,000 principal amount;

• $161.913 million or 80.96% of its $200 million of 6.7% senior debentures due Feb. 15, 2027. The consent payment is $2.50 per $1,000 principal amount;

• $197.08 million or 98.54% of its $200 million of 6.95% senior debentures due June 1, 2028. The consent payment is $2.50 per $1,000 principal amount;

• $112.44 million or 74.96% of its $150 million of 7¾% senior debentures due Oct. 15, 2035. The consent payment is $2.50 per $1,000 principal amount; and

• $165.642 million or 82.82% of its $200 million of 7.42% senior debentures due Feb. 15, 2037. The consent payment is $2.50 per $1,000 principal amount.

At its previous announcement on Dec. 22, El Paso said it had amended and extended the exchange offer.

The offer now ends at 11:59 p.m. ET on Jan. 6 instead of 11:59 p.m. ET on Dec. 30.

The consent deadline will now match the end of the exchange for all series of notes and all holders who tender will receive the full amount.

In addition, under the revised terms the 7¾% senior debentures due Oct. 15, 2035 will now be exchanged for new notes that are the same as El Paso's existing 7¾% medium-term notes due Jan. 15, 2032 except that the new notes will be subject to the same restrictions on transfer as the other debt to be issued in the exchange.

At its previous announcement on Dec. 20, El Paso said it extended the consent deadline to 5 p.m. ET on Dec. 20 from 5 p.m. ET on Dec. 15 for the 7¾% senior debentures due Oct. 15, 2035. The company has not received consents for the 7¾% debentures.

El Paso, which started the offer on Dec. 5, is soliciting consents to amend the notes' indentures.

As originally announced, the exchange price for each CGP note was initially 100% of its principal amount if it is tendered anytime before the offer's expiration at 11:59 p.m. ET on Dec. 30, unless extended. Previously, the exchange price was 100% of its principal amount if it was tendered prior to the consent deadline, and 95% of its principal amount after that time and before the expiration of the offer.

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.

Global Bondholder Services Corp. is the information agent (866 294-2200).

© 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.