Hanover calls $29.897 million of 7.25% convertible debentures

By Jennifer Chiou

New York, April 12 - Hanover Compressor Co. said it called for redemption $29.897 million of Hanover Compressor Capital Trust's 7.25% convertible junior subordinated debentures due 2029.

The Houston-based natural gas compression company said that the redemption date is May 8 and that the securities will be redeemed at par of $50.00 plus accrued distributions.

The trust is required to use proceeds from the redemption to redeem its $29 million aggregate liquidation amount of 7.25% convertible preferred securities and the company's $0.897 million aggregate liquidation amount of its 7.25% convertible common securities.

Prior to 5 p.m. ET on May 7, holders may convert the preferreds into Hanover common stock at $17.875 per share, or 2.7972 shares per $50.00 principal amount.

The company's stock (NYSE: HC) closed at $22.72 on Thursday.

In earlier news, holders of $28.941 million, or 99.8%, of the trust's $29 million of 7.25% convertible preferreds converted their securities ahead of redemption on Feb. 28.

As already noted, the securities were converted into 1,619,048 Hanover shares.

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