HOUSTON, TX--(Marketwire - June 3, 2011) - El Paso Corporation (NYSE: EP) announced today that it has amended and restated its revolving credit facility and renewed the El Paso Exploration & Production Company (EPEP) revolving credit facility, both of which were set to mature in 2012.
Changes to the El Paso Corporation facility include the extension of maturity to 2016, the reduction of available commitments from $1.5 billion to $1.25 billion, and credit terms which now include more flexibility on collateral support and El Paso Corporation's general partnership interest in EPB as collateral. The EP facility also now provides for an elimination of collateral support upon the loans achieving investment grade status. There were no material changes to the covenant and collateral package supporting the $1.0 billion borrowing base facility for EPEP.
The EP facility was financed through a syndication of 23 financial institutions. J.P. Morgan Securities LLC and Citigroup Global Markets Inc. acted as coordinators for the EP Facility. The EPEP facility was financed through a syndication of 31 financial institutions. BNP Paribas Securities Corp. and Scotia Capital acted as coordinators for the EPEP facility.
El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest interstate natural gas pipeline system, one of North America's largest independent oil and natural gas producers and an emerging midstream business. For more information, visit www.elpaso.com.
Cautionary Statement Regarding Forward-Looking Statements
This release includes certain forward-looking statements and projections. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, forward-looking statements involve a number of risks and uncertainties. A variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, those risks and other factors described in the company's (and its affiliates) Securities and Exchange Commission filings. In addition, there are a variety of risks and other factors associated with the proposed transaction that could negatively impact our ability to implement the transaction and/or its projected results, including, without limitation, (a) risks typically inherent in spin-off and related transactions of this type, (b) our ability to pay the planned initial dividend and to increase the dividend thereafter for our pipeline and midstream businesses, (c) our ability to execute our strategy of selling assets to El Paso Pipeline Partners, L.P. to reduce our debt, (d) risks associated with the level of debt to be incurred by the E&P business, (e) the availability of the capital markets for raising capital at El Paso Pipelines Partners, L.P. and additional debt at our E&P business, (f) the ability of the businesses to successfully operate independently, (g) our ability to obtain all necessary regulatory approvals to implement the separation of the companies, including confirmation of the tax-free nature of the transaction (h) the receipt of final approval of our board of directors of the separation and related transactions, (i) disruptions experienced with customers, suppliers and employees and (j) our ability to retain anticipated management teams and key employees of the separated companies. As a result, there is a risk that the proposed separation may not be completed as contemplated, including the risk that there may be material changes in timing and/or terms of the transaction or that the transaction may not be completed at all. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results 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.
Contacts
Investor and Media Relations
Bruce Connery
Vice President
(713) 420-5855
Media Relations
Bill Baerg
Manager
(713) 420-2906