Published on 5/20/2003 in the Prospect News High Yield Daily.
New Issue: El Paso Production $1.2 billion 10-year notes yield 7¾%
By Paul A. Harris
St. Louis, May 20 - El Paso Production Holding Co. sold $1.2 billion of senior notes due June 1, 2013 (B+) at par Tuesday to yield 7¾%, according to a syndicate source.
Price talk was 7½%-7¾%.
Credit Suisse First Boston and Citigroup were joint bookrunners for the Rule 144A deal. The co-managers were Banc of America Securities, Deutsche Bank Securities Inc., Lehman Brothers and Scotia Capital.
Proceeds will be used to repay $1.2 billion of intercompany obligation to El Paso incurred in retirement of the Trinity River financing.
Issuer: | El Paso Production Holding Co.
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Amount: | $1.2 billion
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Maturity: | June 1, 2013
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Security description: | Senior notes
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Bookrunners: | Credit Suisse First Boston, Citigroup (joint)
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Co-managers: | Banc of America Securities, Deutsche Bank Securities, Lehman Brothers, Scotia Capital
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Coupon: | 7¾%
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Price: | Par
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Yield: | 7¾%
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Spread: | 432 basis points over 3 5/8% Treasury due May 2013
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Call Features: | Callable on June 1, 2008 at 103.875, then at 102.583, 101.292, declining to par on June 1, 2011 and thereafter
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Equity clawback: | Until June 1, 2006 for 35% at 107.750
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Settlement date: | May 23, 2003 (T+3)
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Ratings: | Standard & Poor's: B+
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Rule 144A Cusip: | 283703AA4
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Price talk: | 7½%-7¾%
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