El Paso subsidiaries' two deals for $700 million talked at 9 1/8%-9 3/8%

By Paul A. Harris

St. Louis, Feb. 27 - Official price talk of 9 1/8%-9 3/8% emerged Thursday on the $700 million of new Rule 144A high-yield notes from two El Paso Corp. subsidiaries, according to a syndicate source.

Both deals are expected to price on Friday, the source added.

The syndicate for both offerings is comprised of joint bookrunners Salomon Smith Barney and Credit Suisse First Boston, with co-managers ABN Amro, BNP Paribas and JP Morgan.

Southern Natural Gas Co. expects to price $400 million of seven-year senior notes (B1/B+). Of the proceeds, $95 million will be used for general corporate purposes, with the remainder to pay a dividend to El Paso Corp.

ANR Pipeline Co. expects to price $300 million of seven-year senior notes (B1/B+). Proceeds will be used to retire payables to affiliates, with $25 million retained for general corporate purposes.

Both offerings are non-callable for four years.

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