Hanover Compressor calls some 7.25% convertible trust preferreds

By Jennifer Chiou

New York, Dec. 18 - Hanover Compressor Co. announced the redemption of $20.871 million of the convertible junior subordinated debentures due 2029 owned by Hanover Compressor Capital Trust.

Subsequently, the trust is required to use the proceeds to redeem $20.245 million of its 7.25% convertible preferred securities and $0.626 million aggregate liquidation amount of its 7.25% convertible common securities.

Hanover Compressor Co. noted that it owns all of the common securities of the trust.

The Houston-based full service natural gas compression business said the redemption will take place on Jan. 4.

Prior to 5 p.m. ET on Jan. 3, holders may convert their preferred securities at $17.875 per share, or 2.7972 shares per $50.00 principal amount. The company's stock closed at $20.42 on Dec. 14.

For redemption, holders will receive $50.00 for each of their preferred securities, plus accrued distributions from Dec. 15 up to Jan. 4.

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