PreferredStockChannel
Kinder Morgan Inc. | El Paso Energy Capital Trust I 4 3/4% Trust Convertible Preferred Securities (EP.PRC)

Prospectus excerpt:  El Paso Energy Capital Trust I, a Delaware statutory business trust. The sole assets of the Trust will be the 4 3/4% Subordinated Convertible Debentures of EPG due 2028.

6,500,000 4 3/4% Trust Convertible Preferred Securities (7,200,000 if the Underwriters' over-allotment option is exercised in full).

$50 per Trust Preferred Security.

Distributions on the Trust Preferred Securities will accumulate from the closing of this offering of the Trust Preferred Securities and will be payable at the annual rate of 4 3/4% of the liquidation amount of $50 per Trust Preferred Security (equivalent to $2.375 per Trust Preferred Security per annum) if, as and when the Trust has funds available for payment. Distributions will be payable quarterly in arrears on each March 31, June 30, September 30 and December 31, commencing June 30, 1998. Distributions not made on the scheduled payment date will accumulate and compound quarterly at a rate per annum equal to 4 3/4%.

The ability of the Trust to pay distributions on the Trust Preferred Securities is entirely dependent on its receipt of payments with respect to the Debentures held by the Trust. The Debentures will provide that payments of interest may be deferred at any time, and from time to time, by EPG for a period not exceeding 20 consecutive quarters. See "-- The Offering -- Debentures," "Risk Factors -- Restrictions on Certain Payments; Tax Consequences" and "Description of the Trust Preferred Securities -- Distributions" included in this Prospectus Supplement.

If, at any time, EPG or any successor is in default on any of its obligations under the Guarantee, then the Trust Guarantee Trustee (as defined herein), as the holder of the Guarantee, shall have the right to enforce such Guarantee, including the right to enforce the covenant restricting certain payments by EPG described below.

In the Guarantee, the Company has agreed that if (a) for any distribution period, full distributions on a cumulative basis on any Trust Preferred Securities have not been paid, (b) an event of default has occurred and is continuing under the Subordinated Indenture (a "Debenture Event of Default"), (c) the Company is in default of its obligations under the Guarantee or the guarantee of the Trust Common Securities (together with the Guarantee, the "Guarantees") or (d) notice of an Extension Period has been given and shall not have been rescinded or such Extension Period is continuing, then, during such period the Company shall not (i) declare or pay dividends on, make distributions with respect to, or redeem, purchase or acquire, or make a liquidation payment with respect to any of its capital stock (except for (x) dividends or distributions in shares of, or options, warrants or rights to subscribe for or purchase shares of, its capital stock and conversions or exchanges of common stock of one class into common stock of another class and (y) redemptions or purchases of any rights pursuant to the Amended and Restated Shareholder Rights Agreement dated July 23, 1997 (the "Rights Agreement") and the issuance of capital stock pursuant to such rights) or (ii) make any payments of principal, interest or premium, if any, on or repay, repurchase or redeem any debt securities (including guarantees of indebtedness for money borrowed) of the Company that rank pari passu with or junior to the Debentures (other than (u) any redemption, liquidation, interest, principal or guarantee payment by the Company where the payment is made by way of securities (including capital stock) that rank pari passu with or junior to the securities on which such redemption, liquidation, interest, principal or guarantee payment is being made, (v) payments under the Guarantees, (w) purchases of Common Stock related to the issuance of Common Stock under any of the Company's benefit plans for its directors, officers or employees, (x) as a result of a reclassification of the Company's capital stock or the exchange or conversion of one series or class of the Company's capital stock for another series or class of the Company's capital stock, (y) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged and (z) redemptions or purchases of any rights pursuant to the Rights Agreement and the issuance of capital stock pursuant to such rights). See "Description of the Guarantee -- Certain Covenants of EPG" included in this Prospectus Supplement.

Each Trust Preferred Security is convertible at any time prior to the close of business on the Business Day (as defined herein) prior to the date of redemption (the "Conversion Expiration Date") at the option of the holder into shares of Common Stock at the rate of 0.6011 shares of Common Stock (1.2022 shares after giving effect to the payment of a two-for-one stock split effective April 1, 1998) for each Trust Preferred Security (equivalent to a conversion price of $83.18 per share of Common Stock), subject to adjustment in certain circumstances. A holder of Trust Preferred Securities wishing to exercise its conversion right shall surrender any or all of such Trust Preferred Securities, together with an irrevocable conversion notice (or if Trust Preferred Securities are then evidenced by a global certificate, such holder must only deliver a conversion notice), to the person then serving as the conversion agent acting on behalf of the holders of Trust Preferred Securities (in such capacity, the "Conversion Agent"), and the Conversion Agent will exchange the Trust Preferred Securities for a portion (the principal amount of which is equal to the aggregate liquidation amount of the Trust Preferred Securities being so converted) of the Debentures held by the Property Trustee (as defined herein) and immediately convert such Debentures into Common Stock. Except possibly to the extent attributable to accumulated and unpaid interest on the Debentures and cash paid in lieu of fractional shares of Common Stock, a holder should not recognize gain or loss upon the exchange through the Conversion Agent of the Trust Preferred Securities for a proportionate share of the Debentures, followed immediately by the conversion of the Debentures into Common Stock. See "Certain Federal Income Tax Consequences -- Conversion ofTrust Preferred Securities into Common Stock" included in this Prospectus Supplement.

The Trust Preferred Securities will be redeemable for cash, at the option of the Trust, in whole or in part, from time to time on or after March 31, 2002 at the prices specified herein. See "Description of Trust Preferred Securities -- Optional Redemption" included in this Prospectus Supplement. The Trust Preferred Securities will also be redeemable upon the repayment either at maturity of the Debentures or as a result of the acceleration of the Debentures upon an event of default, at a redemption price of $50 per Trust Preferred Security together with accumulated and unpaid distributions thereon to the date of redemption. See "Description of Trust Preferred Securities -- Mandatory Redemption." If at any time prior to the Conversion Expiration Date, less than 10% of the Debentures remains outstanding, such Debentures shall be redeemable at the option of EPG, in whole but not in part, at a redemption price equal to the aggregate principal amount thereof, plus accrued and unpaid interest due thereon, and the proceeds of such redemption will be applied by the Property Trustee to redeem outstanding Trust Securities at a redemption price of $50 per Trust Preferred Security together with accumulated and unpaid distributions thereon to the date of redemption. See "Description of the Trust Preferred Securities -- Events of Default; Notice" and "-- Mandatory Redemption" included in this Prospectus Supplement.

Full Prospectus PDF », KMI Page »

Alternate symbology:EP-C, EP-PC, EPprC
Redeemable?:Yes
Call Date:3/31/2002 (Now Trading Post Call Date)
Perpetual?:Yes
Cumulative?:Yes
Conversion Ratio:1.2022
Conversion Price:$83.18
Shares Offered:6,500,000
Overallotment:700,000
Liquidation Preference:$50
Recent Market Price:$50.43
Premium to Liquidation Preference:
(More Preferreds Trading at a Premium »)
$0.43 (0.86%)
Annualized Dividend:2.3752
Recent Ex-Date:12/14/2021
Current Yield:4.71%
Original Coupon:4.75%
Pay Period:Quarterly
Pay Dates:31-Mar, 30-Jun, 30-Sep, 31-Dec
CDx3 Compliance Rating: Learn EP.PRC's Rating
Kinder Morgan is an energy infrastructure company. Co.'s segments are: Natural Gas Pipelines, which includes the ownership and operation of main interstate and intrastate natural gas pipeline and storage systems, among others; Products Pipelines, which includes the refined petroleum products, crude oil and condensate pipelines; Terminals, which includes the ownership and/or operation of liquids and bulk terminal facilities; and carbon dioxide (CO2), which includes the production, transportation and marketing of CO2, ownership interests in and/or operation of oil fields and gasoline processing plants in West Texas, and the ownership and operation of a crude oil pipeline system in West Texas.

Preferreds: EP.PRC, KMI.PRA


Open the KMI Information Page »
Name: 
Kinder Morgan Inc.
Website: 
www.kindermorgan.com
Sector: 
Oil & Gas Equipment & Services
Number of ETFs Holding KMI: 
113 (see which ones)
Total Market Value Held by ETFs: 
$4,745,121,252.29
Total Market Capitalization: 
$36,301,000,000
% of Market Cap. Held by ETFs: 
13.07%

Quotes delayed 20 minutes

Email EnvelopeFree Email Alerts:
Get Dividend Alerts
Get SEC Filing Alerts
Top Ten Highest Yielding Preferred Stocks
Feel-Good Income: Socially Responsible Preferreds
Dividend Channel's 25 S.A.F.E. Dividend Stocks
Increasing Payments For Decades

Safer than S.A.F.E: Preferreds of Dividend Channel's
S.A.F.E. Dividend Stocks

Recent Preferred Stock Offerings
Preferred Stocks of Dow Components
Preferred Stocks of S&P 500 Components
Preferred Stocks By Industry
Preferred Stocks Where Insiders Are Buying The Common
High Yield Preferred Stocks
Preferreds Trading At Premiums To Liquidation Preference
Preferreds Trading At Discounts To Liquidation Preference
The Top 10 DividendRank'ed U.S. Stocks
The Top 10 DividendRank'ed Canadian Stocks
Top 25 Broker Analyst Picks of the S&P 500
Stock market game

Kinder Morgan Inc. | El Paso Energy Capital Trust I 4 3/4% Trust Convertible Preferred Securities (EP.PRC) Information Page | Preferred Stock Channel | www.PreferredStockChannel.com

Copyright © 2010 - 2021, All Rights Reserved Nothing in Preferred Stock Channel is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy. Video widget and videos powered by Market News Video. Quote data delayed at least 20 minutes; data powered by Ticker Technologies, and Mergent. Contact Preferred Stock Channel; Meet Our Editorial Staff.