Universal Compression to launch $650 million credit facility Wednesday

By Sara Rosenberg

New York, Dec. 6 - Universal Compression Holdings Inc. is scheduled to hold a bank meeting Wednesday to launch its proposed $650 million senior secured credit facility, according to a market source.

Wachovia Capital Markets and J.P. Morgan Securities are joint lead arrangers on the deal.

The facility, which the company hopes will close in January 2005, consists of a $250 million five-year revolving credit facility and a $400 million seven-year term loan B, the source said.

Proceeds will be used to redeem the $440 million of 8.875% notes, repay $82 million of term debt and $50 million outstanding under the existing revolver and for working capital needs and general corporate purposes, according to a company news release.

The 8.875% notes are callable beginning Feb. 15, 2005 at a price of 104.438.

"We are pleased with the potential opportunity to lower ongoing interest expense and extend our existing debt maturity schedules," senior vice president and chief financial officer J. Michael Anderson said in the release.

Universal Compression is a Houston-based natural gas compression services company.

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