El Paso To Raise $1.36 Billion To Cut Debts
El Paso Corp, the largest US natural gas pipeline company, is selling forty five million shares at $19.95 each and another ten million equity units at $50 each to raise about $1.36 billion to pay off debt.
Proceeds from the sales also will be used for general corporate purposes and financing obligations, the company said in a statement.
The sale underwriters have the option to purchase an additional six and three quarter million shares and one and a half million equity units, El Paso said. The units consist of a senior note and a forward contract for common stock.
El Paso, whose stock is down fifty four percent already this year, is trimming debt to keep an investment grade credit rating. Several energy companies have been selling assets and shares to assure investors they won't collapse like Enron Corp.
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