El Paso accepts $277.65 million in tender offers for seven note series

By Angela McDaniels

Tacoma, Wash., April 14 - El Paso Corp. accepted $277,646,000 of notes for purchase in two tender offers for seven series of notes, according to a company news release.

Under the first tender offer, the company received tenders for:

• $10,839,000 of its $38,992,000 of 9 5/8% senior debentures due 2012. Of this amount, $10,744,000 settled on the early settlement date, March 29, and $95,000 settled on April 14;

• $80,505,000 of its $110,397,000 of 12% senior notes due 2013, of which $79,644,000 settled on the early settlement date and $861,000 settled on the final settlement date; and

• $35,345,000 of its $103,212,000 of 8¼% senior notes due 2016, of which $33,827,000 settled on the early settlement date and $1,518,000 settled on the final settlement date.

In the second offer, the company received tenders for:

• $23,496,000 of its $194,508,000 of 7 7/8% senior notes due 2012;

• $53,421,000 of its $287,593,000 of 8.05% senior notes due 2030;

• $43,922,000 of its $581,284,000 of 7.8% senior notes due 2031; and

• $30,118,000 of its $1,035,322,000 of 7¾% medium-term notes due 2032.

The maximum amount spent to purchase notes in the second offer, excluding interest, was subject to a cap equal to $470 million minus the amount paid to purchase notes in the first offer. The cap was not reached, so all of the tendered notes were accepted.

For each $1,000 principal amount, the purchase price was $1,090.00 for the 9 5/8% debentures, $1,265.00 for the 12% notes and $1,180.00 for the 8¼% notes.

In the second offer, the purchase price was $1,072.50 for the 7 7/8% notes, $1,130.00 for the 8.05% notes, $1,107.50 for the 7.8% notes and $1,103.80 for the 7¾% notes.

In each case, the purchase price included a $30.00 early tender payment for each $1,000 principal amount of notes tendered by 5 p.m. ET on March 28, the early tender date.

The company also paid accrued interest up to but excluding the settlement date.

Both tender offers began March 17 and expired at 11:59 p.m. ET on April 13.

The dealer managers were RBC Capital Markets, LLC (877 381-2099 or 212 618-7822) and SG Americas Securities, LLC (212 278-7631). The depositary and information agent was Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 952-2200).

El Paso is based in Houston and provides natural gas and related energy products.

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