Compressco to sell $350 million eight-year notes to fund acquisition

By Paul A. Harris

Portland, Ore., July 21 – Compressco Partners, LP and its wholly owned subsidiary Compressco Finance Corp. plan to participate in an investor roadshow during the present week for a $350 million offering of eight-year senior notes, according to a market source.

The Rule 144A and Regulation S with registration rights deal is set to price during the July 28 week.

BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBC Capital Markets and Wells Fargo Securities LLC are the joint bookrunners. Capital One South Coast and Raymond James & Associates Inc. are the co-managers.

The notes come with three years of call protection and feature a three-year 35% equity clawback.

Mid-single B ratings are expected to be assigned to the notes.

Proceeds, along with $400 million expected to be raised in an equity offering, and a draw on the company's revolver, will be used to fund a portion of the pending acquisition of Compressor Systems, Inc., as well as to repay borrowings, if any, under the existing revolver.

Compressco is a Midland, Texas-based compression-based production enhancement services provider to the oil and gas exploration and production industry.

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