El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Corporation Successfully Prices $500 Million of 8.25% Senior Notes Due 2016
HOUSTON, TX, Feb 04, 2009 (MARKET WIRE via COMTEX) -- El Paso Corporation (NYSE: EP) announced today that it has priced
its public offering, which was substantially oversubscribed, of $500
million of senior notes due February 15, 2016 with a coupon of 8.25%,
issued at a discount generating a yield of 9.125%. El Paso expects
closing to occur on February 9, 2009. The notes are being offered
under El Paso's shelf registration statement.
Net proceeds from the offering will be approximately $472.5 million.
El Paso plans to use the net proceeds from the sale of these notes,
together with the $438 million of net proceeds from El Paso's December
2008 offering of 12.000% notes, for general corporate purposes,
including the repayment of debt maturing during 2009. 2009
maturities include approximately $539 million of El Paso's 7.125%
notes due May 6, 2009 and $413 million of El Paso's 6.75% notes due
May 15, 2009. El Paso repaid $112 million aggregate principal amount
of its 6.375% notes due February 1, 2009.
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
El Paso's offering is being made only by means of a prospectus and
related prospectus supplement, a copy of which may be obtained from
Morgan Stanley at firstname.lastname@example.org or 1-866-718-1649.
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 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. For more
information, visit http://www.elpaso.com.
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 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 Media Relations
Bruce L. Connery
Office: (713) 420-5855
Office: (713) 420-2906
SOURCE: El Paso Corporation