El Paso Successfully Sells $500MM in 5-Year Notes

El Paso has priced its public offering of $500 million of senior notes due December 12, 2013 with a coupon of 12.000%, issued at a discount generating a yield of 15.250%. El Paso expects closing to occur on December 12, 2008. The notes are being offered under El Paso's shelf registration statement.

"Today's successful debt offering demonstrates El Paso's strength and ability to access the capital markets, even in these turbulent times," said Doug Foshee, president and chief executive officer of El Paso Corporation. "We are pleased with this important step in our progress towards meeting the company's 2009 capital needs."

Net proceeds from the offering will be approximately $438 million. El Paso plans to use the net proceeds from the sale of the notes for general corporate purposes, including the repayment of debt maturing during 2009.

2009 maturities include approximately $112 million of El Paso's 6.375% notes due February 1, 2009; approximately $539 million of El Paso's 7.125% notes due May 6, 2009; and $413 million of El Paso's 6.75% notes due May 15, 2009.

Upon issuance, the notes will be senior unsecured obligations of El Paso and will rank equally in right of payment with other existing and future unsecured senior indebtedness of El Paso. The notes will not be guaranteed by any of El Paso's subsidiaries or unconsolidated affiliates.