Published on 3/19/2003 in the Prospect News High Yield Daily.
New Issue: El Paso Energy Partners upsizes seven-year notes to $300 million, yields 8½%
By Paul A. Harris
St. Louis, March 19 - El Paso Energy Partners, LP priced an upsized drive-by offering of $300 million senior subordinated notes due June 1, 2010 (BB-) Wednesday at par to yield 8½%, according to a syndicate source.
Price talk was for a yield of 8½%-8¾%. The deal was increased from $250 million.
The syndicate was comprised of JP Morgan, Goldman Sachs & Co. and UBS Warburg.
Proceeds from the Rule 144A notes will be used to retire senior secured bank debt.
The Houston-based El Paso Corp. subsidiary operates oil and gas pipelines and platforms in the Gulf of Mexico.
Issuer: El Paso Energy Partners, LP
Amount: | $300 million (increased from $250 million)
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Maturity: | June 1, 2010
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Security description: | Senior subordinated notes
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Managers: | JP Morgan, Goldman Sachs, UBS Warburg
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Coupon: | 8½%
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Price: | Par
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Yield: | 8½%
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Spread: | 498 basis points
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Call features: | Callable on June 1, 2007 at 104.25, then 102.125, declining to par on June 1, 2009 and thereafter
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Equity clawback: | Until June 1, 2006 for 33% at 108.50
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Settlement date: | March 24, 2003
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Ratings: | Standard & Poor's BB-
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Distribution: | Rule 144A
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Price talk: | 8½%-8¾%
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