El Paso Announces Proposed Offerings
Five subsidiaries of The El Paso Company, Houston, Texas 77001, announce proposed offerings of an aggregate of $30,864,000 United States Government Guaranteed Ship Financing Bonds, Series P and Q, subject to approval of the Maritime Administration. The bonds will be offered publicly by Merrill Lynch White Weld Capital Markets Group.
The bonds will be fully guaranteed by the United States Government under Title XI of the Merchant Marine Act of 1936. The bonds are to be offered severally by the five companies to assist in the financing of five liquefied natural gas tanker vessels presently under construction at domestic shipyards. These vessels will be used for the transportation of liquefied natural gas from Algeria to terminal facilities on the East Coast of the United States. The Series P bonds will be due on March 31, 2003, and the Series Q bonds will be due on October 15, 1983. Interest on the bonds will be payable semiannually, and the bonds are subject to semiannual redemption through the operation of mandatory sinking funds.