El Paso's New Share Offering Fulfills Requirements of Western Energy Settlement
To fulfill the terms of El Paso Corp.'s western energy settlement, the company on Tuesday priced an offering of 8.8 million shares of common stock at a public offering price of $8.35 per share -- 50 cents higher than the company had announced last month (see Daily GPI, Dec. 24, 2003).
Under the terms of El Paso's deal to settle charges that it withheld natural gas transportation capacity and supply during California's energy crisis, El Paso was required to issue about 26.4 million shares (see Daily GPI, March 24, 2003). El Paso had issued about 17.6 million common shares last November and December.
The latest offering is expected to close by Thursday, and El Paso expects to obtain nearly $73.4 million. The money then will be deposited to benefit the settling parties. The joint book running managers for the offering were J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc.
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