Tennessee Gas Pipeline, El Paso Tennessee Pipeline solicit consents for debentures

By Jennifer Chiou

New York, July 9 - Tennessee Gas Pipeline Co. and El Paso Tennessee Pipeline Co. announced the start of a consent solicitation for Tennessee Gas Pipeline's 6% debentures due 2011 as well as El Paso Tennessee's 9% debentures due 2012 and 7¼% debentures due 2025.

The companies are soliciting consents to amend the indentures to permit each company to convert to a non-corporate legal entity, such as a general partnership, limited partnership or limited liability company.

The proposed amendments would provide that the covenants in the indentures related to the preservation of the companies' corporate existence and consolidation, merger and sale of assets will not prohibit them from conducting a statutory conversion to a non-corporate legal entity.

The solicitation will expire at 5 p.m. ET on July 18.

The companies said that they will pay a cash consent fee of $2.50 for each $1,000 principal amount of notes for which they receive consents.

Merrill Lynch & Co. (888 654-8637 or call collect 212 449-4914) and JPMorgan (866 834-4666 or call collect 212 834-4802) are the solicitation agents. Global Bondholder Services Corp. is the information agent and tabulation agent (866 952-2200 or call collect 212 430-3774).

Tennessee Gas Pipeline is a Delaware corporation and an indirect wholly owned subsidiary of El Paso Corp. Its primary business consists of the interstate transportation and storage of natural gas.

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