Correction: El Paso offers up to $220 cash per note in exchange offer

A story in the Sept. 15 issue of Prospect News incorrectly reported the cash amount offered as part of El Paso Corp.'s exchange offer. The correct amount is $220, which includes a $30 early exchange premium. A corrected version of the story follows:

By Lisa Kerner

Charlotte, N.C., Sept. 14 - El Paso Corp. is offering eligible holders of its 12% senior notes due 2013 a one-for-one exchange of 6½% senior notes due Sept. 15, 2020 plus up to $220 in cash per note, a market source said on Tuesday.

Holders will receive $1,000 of new notes plus $220 in cash for each $1,000 of existing notes. The cash amount includes an early exchange premium of $30 for notes tendered by 5 p.m. ET on Sept. 23, the early tender deadline.

The exchange offer will expire at 11:59 p.m. ET on Oct. 7.

El Paso announced the private exchange on Monday.

As previously reported, the settlement date is expected to be Sept. 24 for holders who tender by the early exchange date and Oct. 8 for those who tender after that time but before the expiration date.

The exchange offer is only being made to noteholders who are qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933 or who are not U.S. persons as defined under Regulation S under the Securities Act.

The exchange offer is conditioned upon the receipt of tenders for at least $300 million principal amount of notes by the early exchange date.

Credit Suisse is the dealer manager with Citi and Goldman, Sachs & Co. as joint dealer managers.

Eligible noteholders can contact Global Bondholder Services Corp. (866 873-5600 or, for banks and brokers, 212 430-3774), the information agent for the exchange offer.

The El Paso-based issuer provides natural gas and related energy products.

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