PANHANDLE EASTERN, A SOUTHERN UNION SUBSIDIARY, ANNOUNCES SUCCESSFUL PRICING OF SENIOR NOTES

HOUSTON, May 21, 2009– Panhandle Eastern Pipe Line Company, LP (PEPL), a wholly-owned subsidiary of Southern Union Company (NYSE: SUG), today announced that it has priced an offering of $150 million of 8.125% senior notes due June 1, 2019. The offering was priced at par and is expected to close on June 2, 2009, subject to customary closing conditions.

Net proceeds of this offering will be used to repay PEPL’s $60.6 million of 6.50% senior notes due July 15, 2009, to fund capital expenditures and for general corporate purposes.

The senior notes have been rated Baa3 by Moody’s Investors Service, Inc., BBB by Standard & Poor’s Ratings Services and BBB by Fitch Ratings. The senior notes will be unsecured senior obligations of PEPL and will rank equally with all of its other unsecured and unsubordinated senior indebtedness from time to time outstanding.

The joint book-running managers on the offering were Wachovia Capital Markets, LLC and RBC Capital Markets Corporation.

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 Panhandle Eastern Pipe Line 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:
Thomas Sandell
Chief Executive Officer
Sandell Asset Management Corp.
212/603-5700
 

John P. Barnett, Director of External Affairs
713-989-7556

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