Hanover Compressor Company Announces Redemption of $383 Million of Senior Secured Notes Issued by Hanover Equipment Trust 2001A and Hanover Equipment Trust 2001B



    HOUSTON, August 17 /CNW/ - Hanover Compressor Company ("Hanover")
(NYSE:  HC) today announced that Hanover Equipment Trust 2001A, a special
purpose Delaware business trust ("HET 2001A"), will redeem all $133 million of
its outstanding 8.5% Senior Secured Notes due 2008 (the "8.5% Notes"), and
Hanover Equipment Trust 2001B, a special purpose Delaware business trust ("HET
2001B"), will redeem all $250 million of its outstanding 8.75% Senior Secured
Notes due 2011 (the "8.75% Notes," and, together with the 8.5% Notes, the
"Notes").

    The indenture governing the 8.5% Notes permits the redemption of all of
the 8.5% Notes at a redemption price of 100% plus accrued and unpaid interest
to the date fixed for redemption. The indenture governing the 8.75% Notes
permits the redemption of all of the 8.75% Notes at a redemption price of
102.917% plus accrued and unpaid interest to the date fixed for redemption.
The redemption date of both series of Notes is September 17, 2007.

    To commence the redemption process, Hanover Compression Limited
Partnership, an indirect wholly owned subsidiary of Hanover ("HCLP"),
exercised its option to purchase from HET 2001A the gas compression equipment
currently under lease to HCLP from HET 2001A, and HCLP exercised its option to
purchase from HET 2001B the gas compression equipment currently under lease
from HET 2001B. HCLP expects to pay HET 2001A approximately $137.7 million and
to pay HET 2001B approximately $266.3 million for the equipment on the date
the Notes are redeemed. The trusts will then use the proceeds from the
equipment sale to fund the redemption of the Notes and the related trust
equity certificates.

    U.S. Bank Trust National Association is the trustee and redemption agent
for the Notes. Formal notice of the redemption setting forth the redemption
procedures was sent to noteholders on August 17, 2007.

    The redemption of the Notes is part of the refinancing plan of Hanover
and Universal Compression Holdings, Inc. ("Universal") being implemented in
anticipation of the closing of their pending merger, which is currently
expected to occur on or about August 20, 2007, if the conditions to the
closing have been satisfied as of that date. As part of the refinancing plan,
Exterran Holdings, Inc., which will be the publicly traded holding company
following the completion of the merger, has engaged Wachovia Capital Markets,
LLC and J. P. Morgan Securities Inc. to arrange and syndicate a senior secured
credit facility, consisting of a revolving credit facility and a term loan,
and has engaged Wachovia to provide a new asset-backed securitization facility
to Exterran. The primary purpose of these new facilities will be to fund the
redemption or repurchase of all of Hanover's and Universal's outstanding debt
other than Hanover's convertible debt securities and the credit facility of
Universal's publicly traded subsidiary, Universal Compression Partners, L.P.
The new facilities will replace Hanover's and Universal's existing bank lines
and Universal's existing asset-backed securitization facility. The closing of
the new facilities is subject to, among other things, the receipt of
sufficient commitments from participating lenders and the execution of
mutually satisfactory documentation.

    About Hanover Compressor Company

    Hanover Compressor Company is a global market leader in full service
natural gas compression and a leading provider of service, fabrication and
equipment for oil and natural gas production, processing and transportation
applications. Hanover sells and rents this equipment and provides complete
operation and maintenance services, including run-time guarantees for both
customer-owned equipment and its fleet of rental equipment.

    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 Hanover's control, which could cause actual
results to differ materially from such statements. Forward-looking information
includes, but is not limited to, statements regarding the ability of the
parties to complete the redemptions and equipment purchases, the timing of the
redemptions and equipment purchases, the use of proceeds from the equipment
purchases, the ability of Hanover and Universal to complete their proposed
merger, the expected timing of the closing of the merger, Hanover's and
Universal's plans for and the timing of the refinancing of certain of their
outstanding debt obligations and Exterran's plans for and the timing of its
entering into a new credit facility and asset-backed securitization facility.
While Hanover 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 future performance or results
of its or Exterran's business. Among the factors that could cause results to
differ materially from those indicated by such forward-looking statements are
the satisfaction of various conditions to the closing of the merger
contemplated by the merger agreement, the possible inability to obtain
sufficient commitments to the credit facility from participating lenders or
the inability to reach agreement with participating lenders on mutually
satisfactory documentation for the credit facility or the securitization
facility.

    These forward-looking statements are also affected by the risk factors,
forward-looking statements and challenges and uncertainties described in
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
Hanover's filings with the Securities and Exchange Commission ("SEC"), which
are available through www.hanover-co.com. Except as required by law, Hanover
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: Hanover Compressor Company, Houston Investor
Relations Inquiries: Senior Vice President and Chief Financial Officer Lee E.
Beckelman, 281-405-5194 lbeckelman@hanover-co.com or Vice President, Investor
Relations and Technology Stephen York, 832-554-4856 syork@hanover-co.com

Organization Profile

HANOVER COMPRESSOR COMPANY

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