Universal Compression calls 7¼% senior notes due 2010

By Devika Patel

Knoxville, Tenn., July 13 - Universal Compression Holdings, Inc. announced that its subsidiary Universal Compression, Inc. will redeem all $175 million of its outstanding 7¼% senior notes due 2010.

The notes' indenture specifies a redemption price of 103.625 plus interest.

The notes are expected to be redeemed on Aug. 13.

The redemption is part of a refinancing plan in anticipation of Universal's pending merger with Hanover Compressor Company. The merger is expected to close by Aug. 20.

As part of the refinancing plan, Exterran Holdings, Inc., which will be the publicly traded holding company, has engaged Wachovia Capital Markets, LLC and J. P. Morgan Securities Inc. to arrange and syndicate a senior secured credit facility and provide a new asset-backed securitization facility for Exterran.

The new facilities will be used to fund the redemption or repurchase of all of the companies' outstanding debt, with the exception of Hanover's convertible debt securities and the credit facility of Universal's subsidiary, Universal Compression Partners, L.P.

The new facilities will replace Universal's and Hanover's existing bank lines and Universal's existing asset-backed securitization facility.

Houston-based Universal Compression Holdings is a natural gas compression services company.

© 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.