Hanover Reports Pricing Tender and Consent Solicitations

Hanover Compressor reported the pricing terms for its previously announced tender offers and consent solicitations for (1) $200 million in aggregate principal amount of its 8.625% Senior Notes due 2010 (CUSIP 410768AF2) (the "8.625% Notes"), (2) $200 million in aggregate principal amount of its 9.0% Senior Notes due 2014 (CUSIP 410768AG0) (the "9.0% Notes") and (3) $150 million in aggregate principal amount of its 7.5% Senior Notes due 2013 (CUSIP 410768AH8) (the "7.5% Notes," and together with the 8.625% Notes and the 9.0% Notes, the "Notes").

The total consideration per $1,000 principal amount of the 8.625% Notes validly tendered and not validly withdrawn prior to 5:00 p.m., New York City time, on August 1, 2007 (the "Consent Payment Deadline") is $1,052.39, of which $30.00 is the consent payment. As of 2:00 p.m., New York City time, on August 3, 2007, (the "Price Determination Date"), the yield to maturity on the 4.25% U.S. Treasury Note due November 30, 2007, the reference security for the 8.625% Notes, was 4.863% and the tender offer yield on the 8.625% Notes was 5.363%. Holders whose 8.625% Notes are validly tendered at or after the Consent Payment Deadline and prior to 5:00 p.m., New York City time, on August 17, 2007 (the "Expiration Time") and are accepted for payment will receive the tender offer consideration of $1,022.39 per $1,000 principal amount of 8.625% Notes tendered, which amount does not include the $30.00 consent payment.

The total consideration per $1,000 principal amount of the 9.0% Notes validly tendered and not validly withdrawn prior to the Consent Payment Deadline is $1,107.26, of which $30.00 is the consent payment. As of the Price Determination Date, the yield to maturity on the 4.875% U.S. Treasury Note due May 31, 2009, the reference security for the 9.0% Notes, was 4.563% and the tender offer yield on the 9.0% Notes was 5.063%. Holders whose 9.0% Notes are validly tendered at or after the Consent Payment Deadline and prior to the Expiration Time and are accepted for payment will receive the tender offer consideration of $1,077.26 per $1,000 principal amount of 9.0% Notes tendered, which amount does not include the $30.00 consent payment.

The total consideration per $1,000 principal amount of the 7.5% Notes validly tendered and not validly withdrawn prior to the Consent Payment Deadline is $1,094.11, of which $30.00 is the consent payment. As of the Price Determination Date, the yield to maturity on the 4.0% U.S. Treasury Note due April 15, 2010, the reference security for the 7.5% Notes, was 4.503% and the tender offer yield on the 7.5% Notes was 5.003%. Holders whose 7.5% Notes are validly tendered at or after the Consent Payment Deadline and prior to the Expiration Time and are accepted for payment will receive the tender offer consideration of $1,064.11 per $1,000 principal amount of 7.5% Notes tendered, which amount does not include the $30.00 consent payment.

In addition, holders whose Notes are validly tendered and accepted for purchase will receive accrued and unpaid interest on those Notes from the last interest payment date up to, but not including, the applicable payment date for the offer.

Withdrawal rights with respect to tendered Notes have expired. Accordingly, Notes tendered may no longer be withdrawn and consents delivered may no longer be revoked.

The tender offers and consent solicitations will expire at the Expiration Time, unless extended or earlier terminated by the Company. The Company reserves the right to terminate, withdraw or amend the tender offers and consent solicitations at any time subject to applicable law.

The Company's obligation to accept for purchase, and to pay for, Notes validly tendered and not validly withdrawn pursuant to the tender offers and the consent solicitations is subject to the satisfaction or waiver of certain conditions, including, among others, the consummation of the mergers contemplated by the Agreement and Plan of Merger among the Company, Universal Compression Holdings, Inc. ("Universal"), Exterran Holdings, Inc. (formerly Iliad Holdings, Inc.) and Exterran's subsidiaries, dated February 5, 2007, as amended, and the receipt of sufficient funds to consummate the tender offers. Each tender offer and consent solicitation is independent of the others, and the complete terms and conditions of the tender offers and the consent solicitations are set forth in the tender offer documents, which are being sent to holders of Notes. Holders of Notes are urged to read the tender offer documents carefully.

The tender offers are part of the refinancing plan of the Company and Universal being implemented in anticipation of the closing of their pending merger, which is currently expected to occur on or about August 20, 2007, if the conditions to the closing set forth in the Agreement and Plan of Merger have been satisfied as of that date. As part of the refinancing plan, Exterran Holdings, Inc., which will be the publicly traded holding company following the completion of the merger, has engaged Wachovia Capital Markets, LLC ("Wachovia Securities") and J.P. Morgan Securities Inc. to arrange and syndicate a senior secured credit facility, consisting of a revolving credit facility and a term loan, and has engaged Wachovia to provide a new asset-backed securitization facility to Exterran. The primary purpose of these new facilities will be to fund the redemption or repurchase of all of the Company's and Universal's outstanding debt other than the Company's convertible debt securities and the credit facility of Universal's publicly traded subsidiary, Universal Compression Partners, L.P. The new facilities will replace the Company's and Universal's existing bank lines and Universal's existing asset-backed securitization facility. The closing of the new facilities is subject to, among other things, the receipt of sufficient commitments from participating lenders and the execution of mutually satisfactory documentation.

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