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El Paso extends exchange offer for 9% units
New York, Dec. 2 - El Paso Corp. said it has extended its exchange offer for its 9% equity security units to Dec. 23 from Dec. 3. The offer was previously extended from Nov. 25.
El Paso said the latest extension is to allow sufficient time for it to disseminate its long-range plan, currently scheduled to be announced Dec. 15.
El Paso announced the offer to exchange all its 9% equity security units for stock and cash on Oct. 24.
At the time, the Houston energy company said it is offering 2.5063 shares of common stock and $9.70 per $50 par unit.
The number of shares on offer in the exchange is the same as holders would receive if they exercise the conversion option - the cash is additional.
El Paso said the exchange offer is "part of its ongoing strategy to reduce debt and increase its financial flexibility."
The exchange is conditional on at least 5.75 million units, equivalent to $287.5 million or 50% of the outstanding units being validly tendered. There are 11.5 million or $575 million outstanding. El Paso originally issued them in June 2002. El Paso will accept no more than 10.35 million units or 90% of the amount outstanding.
The exchange agent is The Bank of New York. The information agent is D.F. King & Co. Inc. (Banks and brokers call 212 269-5550, others call 800 431-9633).
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