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El Paso Tennessee Pipeline begins tender offers for 9%, 7¼% debentures
By Angela McDaniels
Tacoma, Wash., March 17 - El Paso Tennessee Pipeline Co. began tender offers and consent solicitations for its $1,149,000 of outstanding 9% debentures due 2012 and $23,206,000 of outstanding 7¼% debentures due 2025, according to a company news release.
El Paso is soliciting consents from the holders to amend the indenture to eliminate some restrictive covenants and events of default and to amend its merger covenant. Consents are needed from the holders of at least a majority of the aggregate principal amount of both series of debentures in order to make the amendments.
Holders who tender will be deemed to have delivered consents, and holders may not consent without tendering their debentures.
For each $1,000 principal amount, the company is offering $1,100 for the 9% debentures and $1,225 for the 7¼% debentures. These prices include a consent fee of $30 for each debenture tendered by 5 p.m. ET on March 28, the consent date.
The tender offers and consent solicitations will expire at midnight ET on April 13.
The tender offers are subject to the receipt of tenders for at least a majority of debentures by the consent date and the execution of a supplemental indenture implementing the proposed amendments following the receipt of the needed consents.
The company plans to use cash on hand to fund the offers.
The dealer manager and solicitation agent is Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-1057). The information agent is Global Bondholder Services Corp. (866 952-2200 or, for banks and brokerage firms, 212 430-3774).
El Paso Tennessee Pipeline is a subsidiary of El Paso Corp., a Houston-based provider of natural gas and related energy products.
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