Roughly $30 million of El Paso Corp. bank debt is rumored to have traded in two pieces last week out of the same commercial bank. The trades went off in the 85 range, according to market players. El Paso's bank debt initially plunged from the 90s after the Federal Energy Regulatory Commission disclosed that the company's pipeline subsidiary would be held responsible for withholding capacity from California during the state's 2000/2001 energy crisis (LMW, 9/30). Dwight Scott, El Paso cfo, could not be reached by press time. The bank responsible for the trades could not be determined.
The last time the paper was seen trading was immediately after the announcement of FERC's ruling. At that time a $5-10 million trade in the 75-77 range created a buzz as market players were shocked by the levels at which the trade was posted. But dealers said the trade was an anomaly--one completed in a moment of panic. While the latest trade in the 85 range is up there has been no relief for the company. Recently, Standard & Poor's downgraded the company's corporate rating from BBB to BB.