A $16 million auction of El Paso Corp.'s $1 billion credit expiring in August was completed in the 93-94 1/2 context late last week. The identities of the parties involved in the transaction could not be determined. Bank debt for the company has rallied over the past week, with market players anticipating that the August credit will be completely taken out. Additionally, news that the company is moving forward with its restructuring plans, which include asset sales and new financing, pushed the August bank debt up from the 86 1/2 87 1/2 range.
The company also has a $3 billion, 364-day credit facility maturing in May. This facility has a one-year term-out option, but traders believe that the credit will be rolled-up into a new deal that will offer lenders more security. The levels for the May credit have moved up as well, quoted in the 86 1/2 88 context up from the low 80s, where they stood last week. One buysider noted reports that the Federal Energy Regulatory Commission was requesting details regarding $700 million of planned bond offerings caused a "little hiccup", but he said it is too early to tell of the challenges and changes ahead. Calls to Dwight Scott, El Paso cfo, were not returned by press time.