El Paso Corporation (EP)

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El Paso Pipeline Partners Announces Pricing of Public Offering of Common Units

Upon mandatory conversion, holders of Preferred Stock will be entitled to receive 77.2295 shares of El Paso common stock, par value $3.00 per share ("Common Stock"), for each share of Preferred Stock converted. A total of up to 57,922,125 shares of Common Stock will be issued upon conversion of the Preferred Stock. Cash will be paid in lieu of fractional shares of Common Stock.

El Paso expects the conversion of shares to further strengthen its credit profile while providing $35 million of annual cash savings. The conversion does not impact the company's previously announced 2011 adjusted diluted earnings per share guidance.

On and after the Mandatory Conversion Date, dividends will cease to accrue on the Preferred Stock and all rights of holders of the Preferred Stock will terminate except for the right to receive the number of whole shares of Common Stock issuable upon conversion of the Preferred Stock and cash, in lieu of any fractional shares of Common Stock. No payment or adjustment will be made upon conversion of the Preferred Stock for accumulated dividends.