SOUTHERN UNION ANNOUNCES SUCCESSFUL PRICING OF FLORIDA GAS TRANSMISSION SENIOR NOTES

HOUSTON, April 29, 2009– Southern Union Company (NYSE: SUG) today announced that Florida Gas Transmission Company, LLC (FGT), an affiliate of Southern Union Company and El Paso Corporation (NYSE:EP), has successfully priced an offering of $600 million of 7.90% senior notes due May 15, 2019, at an offering price of $99.82 (per $100.00 principal) to yield 7.926%. This transaction was structured as a Rule 144A and Regulation S offering. The offering is expected to close on May 8, 2009, subject to customary closing conditions.

FGT will use the net proceeds from the sale of the notes to partially fund its $2.4 billion Phase VIII expansion project and for general corporate purposes. FGT operates a 5,000-mile natural gas pipeline system extending from south Texas to south Florida with current mainline capacity of approximately 2.2 billion cubic feet per day. The expansion includes the construction of approximately 500 miles of large diameter pipeline and the installation of over 200,000 horsepower of additional compression that would provide up to an additional 820 million cubic feet per day of natural gas transportation capacity.

The notes have been rated Baa2 by Moody’s Investors Service, Inc. and BBB by Standard & Poor’s Rating Services. Upon issuance, the notes will be senior, unsecured general obligations of FGT, ranking pari passu with all of its other senior, unsecured and unsubordinated indebtedness.

The notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (the Securities Act) and to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act. The notes will not be and have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

The joint book-running managers were Goldman, Sachs & Co., Banc of America Securities, LLC, CALYON and J.P. Morgan.

This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such states.

About Southern Union Company

Southern Union Company, headquartered in Houston, is one of the nation’s leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates one of the nation’s largest natural gas pipeline systems with approximately 20,000 miles of gathering and transportation pipelines and North America’s largest liquefied natural gas import terminal, along with serving more than half a million natural gas end-user customers in Missouri and Massachusetts. For further information, visit www.sug.com.

Forward-Looking Information

This news release includes forward-looking statements. Although Southern Union believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Southern Union’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission. The Company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events, or otherwise.

 

For further information:
John P. Barnett, Director of External Affairs
713-989-7556

John F. Walsh, Vice President of Investor Relations
212-659-3208