Exterran Closes Debt Refinancing and Announces Stock Repurchase Program



    HOUSTON, August 20 /CNW/ - Exterran Holdings, Inc. (NYSE:  EXH) announced
that, following the merger of Hanover Compressor Company and Universal
Compression Holdings into Exterran today, Exterran has completed a refinancing
of the outstanding debt of Hanover and Universal by closing two new debt
facilities. Exterran entered into a $1.65 billion senior secured credit
facility, consisting of an $850 million five-year revolving line of credit and
an $800 million six-year term loan, with a syndicate of financial institutions
as well as a $1.0 billion asset-backed securitization (ABS) facility. Initial
borrowings under these facilities include approximately $65 million under the
revolving line of credit, $800 million under the term loan and $400 million
under the ABS facility. As a result of these new Exterran facilities, all of
the debt of Universal and Hanover has been retired or refinanced, other than
Hanover's convertible debt securities, the credit facility of Exterran
Partners, L.P. (formerly known as Universal Compression Partners, L.P.), and
Hanover's equipment trust notes. On Friday, August 17, 2007, Hanover called
for redemption all $383 million aggregate principal amount of its equipment
trust notes. Those notes will be refinanced with additional borrowings under
Exterran's new ABS facility.

    "We are pleased by the strong market execution and attractive terms of
these credit facilities, which we believe reflect the capital markets'
confidence in Exterran's financial strength and business strategy," said J.
Michael Anderson, Exterran's Senior Vice President and Chief Financial
Officer. "This refinancing will provide Exterran with approximately $10
million to $12 million per year in ongoing interest expense savings, compared
to the combined interest expense levels of Universal and Hanover today, and it
gives Exterran the necessary financial flexibility to continue to pursue its
business plan."

    The new credit facility was arranged by Wachovia Capital Markets, LLC and
J.P. Morgan Securities, Inc., as Joint Lead Arrangers, Wachovia Bank, National
Association, as Administrative Agent, and JPMorgan Chase Bank, N.A., as
Syndication Agent. Bank of America, N.A., Calyon New York Branch and Fortis
Capital Corp. were Co-Documentation Agents. The new ABS facility was arranged
and provided by Wachovia Capital Markets, LLC.

    In conjunction with this debt refinancing, Exterran is expected to record
during the third quarter of 2007 approximately $75 million, on a pretax basis,
in debt extinguishment costs, including call premium, swap termination and
write-off of unamortized debt issuance costs.

    Stock Repurchase Program

    Exterran also announced that its Board of Directors today authorized the
repurchase of up to $200 million of Exterran's common stock. This
authorization extends until August 2009. Exterran intends to make purchases
from time to time as market conditions warrant and hold the repurchased shares
in treasury for general corporate purposes.

    About Exterran

    Exterran Holdings, Inc. is the global market leader in full service
natural gas compression and a premier provider of sales, operations,
maintenance, fabrication, service and equipment for oil and gas production,
processing and transportation applications. Exterran serves customers across
the energy spectrum--from producers to transporters to processors to storage
owners. Headquartered in Houston, Texas, Exterran and its 11,000 employees
have operations in over 30 countries worldwide. For more information, visit
www.exterran.com.

    Forward-Looking Statements

    All statements in this release (and oral statements made regarding the
subjects of this release) other than historical facts are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of uncertainties and
factors, many of which are outside Exterran's control, which could cause
actual results to differ materially from such statements. Forward-looking
information includes, but is not limited to, the refinancing plan with respect
to the equipment trust notes, the expected ongoing interest expense savings as
a result of the debt refinancing, the degree of financial flexibility and aid
in the pursuit of Exterran's business plan that the refinancing will provide
and Exterran's intentions with respect to acquiring its shares as part of the
stock repurchase program. While Exterran believes that the assumptions
concerning future events are reasonable, it cautions that there are inherent
difficulties in predicting certain important factors that could impact the
accuracy of the forward-looking information. Among the factors that could
cause results to differ materially from those indicated by such
forward-looking statements include changes in Exterran's credit rating and the
factors that impact its credit rating, changes in the capital markets for both
debt and equity, changes in prevailing interest rates and Exterran's future
performance.

    These forward-looking statements are also affected by the risk factors,
forward-looking statements and challenges and uncertainties described in
Universal's Annual Report on Form 10-K for the year ended December 31, 2006,
as amended by Amendment No. 1 thereto, Hanover's Annual Report on Form 10-K
for the year ended December 31, 2006, as amended by Amendment No. 1 thereto,
and those set forth from time to time in Exterran's, Universal's and Hanover's
filings with the Securities and Exchange Commission ("SEC"), which are
currently available through www.universalcompression.com and
www.hanover-co.com and will later be available at www.exterran.com. Except as
required by law, Exterran expressly disclaims any intention or obligation to
revise or update any forward-looking statements whether as a result of new
information, future events, or otherwise.




For further information:

For further information: For Exterran: David Oatman, 713-335-7460
(Investors) or Rick Goins, 832-554-4918 (Media)

Organization Profile

HANOVER COMPRESSOR COMPANY

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