Exterran Partners to price $300 million 81/2-year notes later Monday

By Paul Deckelman

New York, March 31 - Exterran Partners, LP and its EXLP Finance Corp. funding subsidiary were heard by high-yield syndicate sources to be shopping around a $300 million offering of 81/2-year senior notes due in October 2022, with pricing expected on Monday afternoon.

The Rule 144A and Regulation S with regulation rights deal is being marketed via an investor call scheduled for 11:30 a.m. ET.

Wells Fargo Securities LLC is the left-side bookrunner; other bookrunners on the deal are Credit Agricole Securities (USA) Inc., RBS Securities Inc., BofA Merrill Lynch, J.P. Morgan Securities LLC, RBC Capital Markets Corp. and Goldman Sachs & Co.

Co-managers on the offering are BBVA Securities Inc., Capital One Southcoast, Inc., SMBC, BB&T Capital Markets, Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA) Inc., Regions Capital Markets and Scotia Capital (USA) Inc.

The issue is expected to carry a B1 rating from Moody's Investors Service and a B rating from Standard & Poor's - a one-notch upgrade from each agency from the company's current ratings.

The notes will have call protection for the first four years after issue.

Exterran, a Houston-based provider of natural gas contract operations services to customers throughout the United States, plans to use about $201.1 million of the expected net proceeds from the offering to fund a portion of the purchase price of its pending acquisition of natural gas compression assets from MidCon Compression, LLC and for the repayment of borrowings outstanding under its revolving credit facility.

The company said that amounts repaid under its revolver may be re-borrowed in accordance with the terms of the facility. Pending such use, all of the proceeds from this offering - less the initial purchaser discounts - will be placed into an escrow account.

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