New Issue: Hanover Compressor $150 million seven-year notes yield 7½%

By Paul A. Harris

St. Louis, March 27 - Hanover Compressor Co. priced a $150 million issue of seven-year senior notes (B3/B) at par to yield 7½% on Monday, according to an informed source.

The yield came on top of the price talk.

JP Morgan and Credit Suisse were joint bookrunners for the registered, quick-to-market issue. Citigroup, Deutsche Bank Securities, Morgan Stanley and Wachovia Securities were the co-managers.

Proceeds, together with the company's credit facility, will be used to redeem its zero coupon subordinated notes due March 31, 2007.

Hanover Compressor is a Houston-based full service natural gas compression business.

Issuer:	Hanover Compressor Co.
Amount:	$150 million
Maturity:	April 15, 2013
Security description:	Senior notes
Bookrunners:	JP Morgan, Credit Suisse
Co-managers:	Citigroup, Deutsche Bank Securities, Morgan Stanley, Wachovia Securities
Coupon:	7½%
Price:	Par
Yield:	7½%
Spread:	280 bps
Call features:	Make-whole call at Treasuries plus 50 basis points until April 15, 2010, then callable at 103.75, 101.875, par on and after April 15, 2012
Equity clawback:	Until April 15, 2009 for 35% at 107.50
Trade date:	March 27
Settlement date:	March 31
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	SEC Registered
Price talk:	7½% area

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