Hanover Compressor's $262.6 million seller notes talked at 11¼%-11½%

By Paul A. Harris

St. Louis, Dec. 1 - Price talk of 11¼%-11½% emerged Monday on Hanover Compressor Co.'s $262.6 million of zero-coupon subordinated notes due March 31, 2007 (Caa1/B-), according to an informed source.

The deal is expected to price late Tuesday, the source added.

Goldman Sachs & Co. is the bookrunner on the registered seller note offering.

The notes will come with an 11% accretion rate. They will be non-callable before March 31, 2006, then at 102.5% of accreted value.

Schlumberger Ltd., which is selling the notes, will use proceeds to repay its corporate debt. Hanover receives no proceeds from the sale.

Hanover Compressor is a Houston-based provider of services and equipment for natural gas processing and transportation.

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