Exterran Holdings to price $250 million five-year convertible notes

By Rebecca Melvin

New York, June 3 - Exterran Holdings Inc. plans to price $250 million of five-year convertible notes, market sources said.

There is a greenshoe of up to $37.5 million principal amount of additional notes.

J.P. Morgan Securities Inc., Merrill Lynch & Co., Wachovia Securities LLC and Credit Suisse are acting as joint bookrunners for the offering.

In connection with the registered, off-the-shelf offering, Exterran plans to enter into convertible note hedge and warrant transactions with one or more of the underwriters and their affiliates.

A portion of the proceeds will pay the cost of the convertible note hedge transaction. The remainder of proceeds will be used to pay down borrowings under the company's revolving credit facility and its asset-backed securitization facility.

Exterran is a Houston-based oil and gas production company.

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