PRICING SUPPLEMENT NO. 01 Registration No. 333-86049
Dated October 5, 2000 Filed pursuant to
to Supplemental Prospectus Rule 424(b)(2)
Dated December 14, 1999
and Base Prospectus
Dated December 3, 1999
EL PASO ENERGY CORPORATION
Global Medium Term Notes
(Senior Fixed Rate Notes)
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Trade Date: October 5, 2000
Settlement Date (Original Issue Date): October 11, 2000
Maturity Date: October 15, 2030
Principal Amount (in specified currency): US$ 300,000,000
Price to Public (Issue Price): 99.561% of Principal Amount
Agent's Discount or Commission: 0.875%
Net Proceeds to El Paso Energy: US$ 296,058,000
Interest Rate: 8.050% per annum
Record Dates: Each April 1 and October 1
Interest Payment Dates: Each April 15 and October 15
First Interest Payment Date: April 15, 2001
Form of Note (Book-Entry or Certified): Book-Entry
CUSIP No: 28368E AA 4
Trustee and Paying Agent: The Chase Manhattan Bank
Other Terms: None
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Capitalized terms used in this pricing supplement which are defined in
the prospectus supplement have the meanings assigned to them in the prospectus
supplement. Medium Term Notes may be issued by El Paso Energy in an aggregate
principal amount of up to $600,000,000 and, to date, including this offering, an
aggregate of $300,000,000 Medium Term Notes have been issued.
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PRICING SUPPLEMENT NO. 01
October 5, 2000
Additional Information:
RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED AND PREFERENCE STOCK DIVIDEND REQUIREMENTS
The information contained in the base prospectus under the caption "Ratio
of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and
Preferred and Preference Stock Dividend Requirements" is hereby amended in its
entirety as follows:
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Six Months
Ended
Year Ended December 31, June 30,
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1995 1996 1997 1998 1999 1999 2000
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Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed
Charges and Preferred and Preference Stock Dividend Requirements (1).........
2.99x 2.62x 2.53x ______ (2) ______ (2) ______(2) 2.24x
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(1) The ratio of earnings to combined fixed charges and preferred and
preference stock dividend requirements for the period presented is the
same as the ratio of earnings to fixed charges since we have no
outstanding preferred stock or preference stock and, therefore, no
dividend requirements.
(2) Earnings were inadequate to cover fixed charges by $560 million in
1998, $407 million in 1999, and $212 million for the six months ended June
30, 1999.
For the purpose of computing these ratios, earnings means income (loss) from
continuing operations before:
- income taxes;
- minority interest in majority-owned subsidiaries;
- interest expense, not including interest on rate refunds;
- amortization of debt costs;
- that portion of rental expense which we believe to
represent an interest factor; and
- adjustment to equity earnings to reflect actual
distributions from equity investments.
Fixed charges means the sum of the following:
- interest cost, not including interest on rate refunds;
- amortization of debt costs;
- that portion of rental expense which we believe to
represent an interest factor;
- the pre-tax preferred stock dividend requirements of
majority-owned subsidiaries; and
- minority interest in majority-owned subsidiaries.
PLAN OF DISTRIBUTION
The Notes are being purchased in the amounts indicated by the
underwriters listed below, individually as principal.
Banc of America Securities LLC US$ 180,000,000
ABN AMRO Incorporated US$ 60,000,000
Chase Securities Inc. US$ 60,000,000
The Company has agreed to indemnify the underwriters against certain
liabilities, including liabilities under the Securities Act of 1933, as amended.
