Skip to main content

El Paso

(EP) - Get Free Report

raised $1.35 billion to retire short-term debt through the sale of common shares and convertible notes.

The company is among several power companies that has been forced into the capital markets to shore up its liquidity in the face of ratings downgrades and turbulent energy trading markets. Earlier this month El Paso said it would scale back its trading operations and concentrate on its core business of natural gas transportation.

The company sold 45 million common shares at $19.95 each and 10 million 9% notes that are mandatorily convertible to common shares in three years. The new stock will increase El Paso's float by about 8.5%. The company had originally hoped to raise about $1.5 billion in the offering.

El Paso was rising 0.4% to $20.03 in the premarket.