Hanover Compressor calls remaining 7¼% convertible trust preferreds

By Laura Lutz

Des Moines, May 11 - Hanover Compressor Co. announced that Hanover Compressor Capital Trust will redeem the remaining $7,873,500 liquidation amount of its 7¼% convertible preferred securities on May 30.

The redemption of the preferreds will be triggered by Hanover Compressor Co.'s redemption of $8,121,050 principal amount of its convertible junior subordinated debentures due 2029, which are held by the trust. The trust is required to use the proceeds of the redemption to redeem the preferreds as well as $247,550 liquidation amount of its 7¼% convertible common securities. The common securities are owned by Hanover Compressor Co.

The preferred securities will remain convertible until 5 p.m. ET on May 29 at a price of $17.875 per share. Hanover stock closed at $22.43 on Thursday.

If the holders do not convert their preferreds, they will receive $50 for each of the securities plus accrued interest on the redemption date.

Houston-based Hanover provides services for the oil and natural gas industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.