El Paso Tennessee Pipeline gets needed consents for 9%, 7¼% debentures

By Susanna Moon

Chicago, March 29 - El Paso Tennessee Pipeline Co. said holders had tendered $199,000, or 17.32%, of its $1,149,000 outstanding 9% debentures due 2012 and $23,050,000, or 99.33%, of its $23,206,000 outstanding 7¼% debentures due 2025 as of 5 p.m. ET on March 28, the consent date.

The company said it settled early tenders on March 29.

El Paso said it received the needed consents to amend both note series to eliminate some restrictive covenants and events of default and to amend its merger covenant. Consents were needed from the holders of at least a majority of the aggregate principal amount of the debentures.

The company will execute a supplemental indenture.

Holders who tender will be deemed to have delivered consents, and holders may not consent without tendering their debentures.

For each $1,000 principal amount, the company is offering $1,100 for the 9% debentures and $1,225 for the 7¼% debentures. These prices include a consent fee of $30 for each debenture tendered by the consent date.

The offers will continue until midnight ET on April 13, but tendered notes may no longer be withdrawn.

The company previously said it planned to use cash on hand to fund the offers.

The dealer manager and solicitation agent is Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-1057). The information agent is Global Bondholder Services Corp. (866 952-2200 or, for banks and brokerage firms, 212 430-3774).

El Paso Tennessee Pipeline is a subsidiary of El Paso Corp., a Houston-based provider of natural gas and related energy products.

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