By Lisa Kerner
Charlotte, N.C., Oct. 19 - Exterran Partners LP entered into a previously announced $150 million asset-backed securitization facility in conjunction with Wells Fargo Bank, NA, according to a form 8-K filed with the Securities and Exchange Commission.
EXLP ABS 2009 LLC, an Exterran subsidiary, will issue the notes at par.
The ABS revolving notes are payable in July 2013. Interest and fees will accrue at a variable rate equal to Libor or a base rate, at the issuer's option, plus 325 basis points, the filing said.
According to Exterran, the notes are secured by a pledge of assets, mainly compression services contracts and a fleet of natural gas compressor units used to provide compression services under the contracts.
As previously reported, proceeds from the issue will be used to help fund the acquisition of contracts with 18 customers and about 900 compressor units from Exterran Holdings Inc. for $144 million. Proceeds will also be available for future acquisitions.
Exterran said previously it expected to borrow about $58 million under the facility for the acquisition and to raise other funds from the issuance of around $86 million of new equity to Exterran Holdings.
Houston-based Exterran Partners provides natural gas contract operations services. Exterran Holdings indirectly owns a majority interest in Exterran Partners.
| Issuer: | Exterran Partners LP subsidiary
|
| Issue: | Asset-backed notes
|
| Amount: | $150 million
|
| Maturity: | July 2013
|
| Coupon: | Libor or base rate plus 325 bps
|
| Price: | Par
|
| Distribution: | Private placement
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