News Releases

Baker Botts Advises El Paso Electric Company in Private Placements of Senior Notes

Release
Deal Description: On June 28, 2018, El Paso Electric Company (NYSE: EE) completed a private placement of $125 million aggregate principal amount of 4.22% Senior Notes due August 15, 2028 to institutional investors and Rio Grande Resources Trust II (the “Trust”) completed a private placement of $65,000,000 aggregate principal amount of 4.07% Senior Guaranteed Notes due August 15, 2025 to institutional investors.  The Trust is a Texas grantor trust through which El Paso Electric finances its portion of fuel for the Palo Verde Generating Station.  

The Trust and El Paso Electric will pay interest on the notes, as applicable, on February 15 and August 15 of each year until maturity, beginning on February 15, 2019.  The notes may be redeemed, in whole or in part, at any time at a redemption price equal to 100% of the principal amount to be redeemed plus a make-whole amount. 

El Paso Electric will guarantee the payment of principal and interest on the notes issued by the Trust.  Both the sale of the notes and the guarantee by El Paso Electric of the notes issued by the Trust were made in reliance on a private placement exemption from registration under the Securities Act of 1933, as amended.

The proceeds from the notes issued by the Trust will primarily be used to repay outstanding short-term borrowings under the revolving credit facility (the “RCF”) to finance nuclear fuel purchases.  The proceeds from the notes issued by El Paso Electric will primarily be used to repay outstanding short-term borrowings under the RCF and for working capital and general corporate purposes.

El Paso Electric is a regional electric utility providing generation, transmission and distribution service to approximately 418,000 retail and wholesale customers in a 10,000 square mile area of the Rio Grande valley in west Texas and southern New Mexico. 

Baker Botts Lawyers/Office Involved:


Corporate: Tim Taylor (Partner, Houston); Carina Antweil (Senior Associate, Houston) and Emmie Proctor (Associate, Houston)

Finance: Rachael Lichman (Partner, Houston) and Josh Espinosa (Associate, Dallas)

 

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Baker Botts is an international law firm of approximately 725 lawyers practicing throughout a network of 14 offices around the globe. Based on our experience and knowledge of our clients' industries, we are recognized as a leading firm in the energy and technology sectors. Since 1840, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit bakerbotts.com.

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