By Paul A. Harris
St. Louis, Dec. 2 - Schlumberger Ltd. sold $262.6 million principal amount of zero-coupon subordinated notes due March 31, 2007 (Caa1/B-) issued by Hanover Compressor Co. at 69.307 Tuesday for an 11 3/8% yield to maturity, according to an informed source.
Price talk was for a yield of 11¼%-111/2.
The sale generated approximately $182 million of proceeds.
Goldman Sachs & Co. ran the books on the registered seller note offering.
Schlumberger will use proceeds to repay its corporate debt; Hanover receives no proceeds from the sale.
Hanover Compressor is a Houston-based company providing natural gas compression and services and equipment for oil and natural gas processing and transportation.
| Issuer: | Hanover Compressor Co.
|
| Face amount: | $262.622 million
|
| Proceeds: | $182 million |
|
| Maturity: | March 31, 2007
|
| Security description: | Zero-coupon subordinated notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | Zero coupon for the life of the bond
|
| Accretion rate: | 11%
|
| Price: | 69.307
|
| Yield to maturity: | 11 3/8%
|
| Call features: | Callable after March 31, 2006 at 102.50 of accreted value
|
| Settlement date: | Dec. 8
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 11¼%-11½
|
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