New Issue-Panhandle Eastern sells $150 mln in notes

May 21 (Reuters) - Panhandle Eastern Pipe Line Co LP, a
unit of Southern Union Co (SUG.N: Quote, Profile, Research), on Thursday sold $150
million in 10-year notes, a source familiar with the
transaction said.

The size of the deal was increased from an originally
planned $100 million.

Royal Bank of Canada and Wachovia were the joint
bookrunning managers for the sale.
BORROWER: PANHANDLE EASTERN PIPE LINE COMPANY
AMT $150 MLN COUPON 8.125 PCT MATURITY 6/1/2019
TYPE NOTES ISS PRICE 100 FIRST PAY 12/1/2009
MOODY'S Baa3 YIELD 8.125 PCT SETTLEMENT 6/2/2009
S&P BBB-MINUS SPREAD N/A PAY FREQ SEMI-ANNUAL
FITCH BBB-MINUS NON-CALLABLE
(Editing by Theodore d'Afflisio)