Hanover Compressor to buy back part of 2001A equipment lease obligation via stock sale

By Jennifer Chiou

New York, Aug. 3 - Hanover Compressor Co. announced it will use the proceeds of a stock offering to repay a portion of its 2001A equipment lease obligations due Sept. 1, 2008, according to a 424B3 filing with the Securities and Exchange Commission.

As of June 30, the weighted average interest of the lease obligations was 8.6%.

To fund the redemption, the company is issuing 11.175 million shares of its stock, which closed at $14.85 on Aug. 2.

There is a greenshoe option for 1,676,250 shares and Hanover is anticipating net proceeds of $155.2 million or $178.6 million if the greenshoe is fully exercised.

If underwriters exercise the over-allotment option, the company intends to repay a portion of outstanding borrowings under its bank credit facility as well as for general corporate purposes.

Credit Suisse First Boston and JPMorgan are joint book-running managers and Banc of America Securities LLC, Citigroup, Scotia Capital, Wachovia Securities and Calyon Securities Inc. are co-managers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.