5% subordinated debentures due 1969, common stock (par value $1)

The Transwestern Pipeline Company of Houston was incorporated in Delaware on March 11, 1957, by Warren Petroleum Corporation, Monterey Oil Company, and J.R. Butler. It was created to build and operate a natural gas pipeline system extending 1,220 miles from Kansas, Oklahoma, and Texas through the states of New Mexico and Arizona to the Arizona-California border in the vicinity of Needles, California. There it would connect with the natural gas pipeline system of Pacific Lighting Gas Supply Company, a subsidiary of Pacific Lighting Corporation. The initial maximum delivery to Southern California was set at 350 million cubit feet per day. In November 1959 Transwestern sold, through an initial public offering, $40 million of 5 percent subordinated debentures and two million shares of common stock. The deal was managed by Lehman Brothers and Merrill Lynch. The offering occurred to raise part of the $194 million needed to bring the line into initial operation. In addition to the public offering, Transwestern had arranged for private placement of $103 million of 5 1/4 percent first mortgage bonds due December 1980 and $28 million in bank loans.