El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Corporation Announces Pricing of Public Offering of $600 Million of 7.25% Senior Notes Due 2018
HOUSTON, TX, May 22, 2008 (MARKET WIRE via COMTEX News Network) -- El Paso Corporation (NYSE: EP) (El Paso) announced today that it has
priced its pubic offering of $600 million of senior notes due June 1,
2018 with a coupon of 7.25%. El Paso expects closing to occur on May
30, 2008. The notes are being offered under El Paso's shelf
Net proceeds from the offering will be approximately $595 million.
El Paso plans to use the net proceeds from the sale of the notes for
general corporate purposes, including the repayment of debt maturing
during the remainder of 2008. Pending the use of the proceeds for
other purposes, El Paso intends to apply the net proceeds to reduce
outstanding borrowings under El Paso's revolving credit facility and
under the revolving credit facility of El Paso's subsidiary, El Paso
Exploration & Production Company.
Upon issuance, the notes will be senior unsecured obligations of El
Paso and will rank equally in right of payment with other existing and
future unsecured senior indebtedness of El Paso. The notes will not
be guaranteed by any of El Paso's subsidiaries or unconsolidated
The offering is being made only by means of a prospectus and related
prospectus supplement, a copy of which may be obtained from Deutsche
Bank Securities Inc. at 60 Wall Street, New York, New York 10005,
This press release does not constitute an offer to sell or a
solicitation of any offer to buy such securities nor shall there be
any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
El Paso Corporation provides natural gas and related energy products
in a safe, efficient, and dependable manner. El Paso owns North
America's largest interstate natural gas pipeline system and one of
North America's largest independent natural gas producers.
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. All
forward-looking statements are based on assumptions that El Paso
believes to be reasonable. However, actual results almost always vary
from assumed facts and the differences can be material, depending
upon the circumstances. As a result, you should not place undue
reliance on such forward-looking statements. The words "believe,"
"expect," "estimate," "anticipate" and similar expressions will
generally identify forward-looking statements. All of El Paso's
forward-looking statements, whether written or oral, are expressly
qualified by these cautionary statements and any other cautionary
statements that may accompany such forward-looking statements. In
addition, El Paso disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date of this release.
With this in mind, you should consider the risks discussed under the
caption "Risk Factors" in the offering memorandum, El Paso's Annual
and Quarterly Reports on Forms 10-K and 10-Q and in the other
documents El Paso files with the SEC from time to time, which could
cause actual results to differ materially from those expressed in any
forward-looking statement made by El Paso or on El Paso's behalf.
Investor and Public Relations
Bruce L. Connery
Office: (713) 420-5855
Office: (713) 420-2906
SOURCE: El Paso Corporation