El Paso gets $400 million revolver

By Sara Rosenberg

New York, Nov. 4 - El Paso Corp. closed on a new $400 million revolving credit facility due May 3, 2006, according to an 8-K filed with the Securities and Exchange Commission Friday.

Fortis Capital Corp. provided the facility.

Interest on the revolver is Libor plus 250 basis points if usage is greater than 90% and steps down to Libor plus 175 bps if usage is 50% or less.

There is a 50 bps commitment fee.

The initial borrowings base is set at $300 million.

Borrowings are available for working capital and general corporate purposes.

Security is specific oil and gas reserves and properties of El Paso Production Oil & Gas USA LP.

Financial covenants include a maximum ratio of debt to consolidated EBITDA of 6.25 to 1 at any time on or after Sept. 30, and a ratio of consolidated EBITDA to interest expense and dividends paid of no less than 1.6 to 1 prior to March 31, 2006, and 1.75 to 1 thereafter.

El Paso, a Houston-based natural gas and energy company, closed on the revolver Thursday.

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