El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
Colorado Interstate Gas Company Announces Pricing of Senior Notes Offering
HOUSTON, TEXAS, March 2, 2005—Colorado
Interstate Gas Company (CIG), a subsidiary of El Paso Corporation (NYSE:EP),
announced today that it has priced an offering of $200 million of senior notes
due 2015 at 158 basis points over the 10-year Treasury rate with a coupon of
5.95 percent. This offering was done in a Rule 144A offering with registration
rights. CIG expects closing to occur on or about March 9, 2005.
The net proceeds of the offering are expected to be set aside to repay $180
million of CIG's 10-percent senior debentures, which mature on June 15, 2005, at
or prior to maturity, and for general corporate purposes.
Upon issuance, the notes will be senior unsecured obligations of CIG and will
rank equally in right of payment with other existing and future unsecured senior
indebtedness of CIG. The notes will not be guaranteed by El Paso Corporation or
any of its affiliates.
The notes will be offered in the United States to qualified institutional
buyers pursuant to Rule 144A under the Securities Act of 1933. The notes have
not been registered under the Securities Act and may not be offered or sold in
the United States without registration or an applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or a solicitation of any offer to buy such securities and is issued
pursuant to Rule 135c under the Securities Act.
This news release includes forward-looking statements made in reliance on the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
The company has made every reasonable effort to ensure that the information and
assumptions on which these statements are based are current, reasonable, and
complete. However, a variety of factors could cause actual results to differ
materially from expectations expressed in this release, including, without
limitation, expectations regarding the closing and use of proceeds of this
offering; our ability to successfully register the securities being offered; the
uncertainties associated with governmental regulation; regulatory proceedings;
and other factors described in the company's (and its affiliates') Securities
and Exchange Commission filings. While the company makes these statements in
good faith, neither the company nor its management can guarantee that
expectations will be achieved. Reference must be made to those filings for
additional important factors that may affect actual results. The company assumes
no obligation to publicly update or revise any forward-looking statements made
herein or any other forward-looking statements made by the company, whether as a
result of new information, future events, or otherwise.