By Ronda Fears
Nashville, Tenn., June 21 - El Paso Corp. sold $500 million of three-year mandatory convertibles at par of 50 to yield 9.0% with a 20% initial conversion premium, via joint bookrunning lead managers Credit Suisse First Boston and JPMorgan.
The deal sold in the middle of price talk that put the dividend between 8.75% and 9.25% with an 18% to 22% initial conversion premium.
Houston-based El Paso, a natural gas company, that plans to use proceeds to repay short-term debt and other financing obligations, and for general corporate purposes.
Terms of the new deal are:
| Issuer: | El Paso Corp.
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Lead Managers: | | Credit Suisse First Boston and JPMorgan
|
| Maturity Date: | Aug. 16, 2005
|
| Coupon: | 9.0%
|
| Issue Price: | Par, $50
|
| Yield: | 9.0%
|
| Conversion Premium: | 20%
|
| Conversion Price: | $19.95/$23.94
|
| Conversion Ratio: | 2.0866/2.5063
|
| Call: | non-callable
|
| Settlement Date: | June 26
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
