Hanover Compressor says holders convert $28.85 million of preferreds ahead of redemption

By Laura Lutz

Des Moines, May 14 - Hanover Compressor Co. announced that, as of May 7, holders had converted $28,851,550 principal amount of the $29 million principal amount of Hanover Compressor Capital Trust's 7¼% convertible preferred securities due 2029 that were called on April 12.

The announcement was made in an 8-K filing with the Securities and Exchange Commission.

The buyback was triggered by Hanover Compressor Co.'s redemption of $29,897 million principal amount of its convertible junior subordinated debentures due 2029, which were all owned by the trust.

The trust was then required to redeem a corresponding amount of the preferreds and its 7¼% convertible common securities. The common securities are all owned by Hanover Compressor Co.

The company issued 1,614,040 common shares in exchange for the preferreds, equal to a conversion price of $17.875 per share.

On May 11, the trust called another $7,873,500 liquidation amount of the preferreds for redemption on May 30. That redemption was triggered by Hanover Compressor Co.'s redemption of $8,121,050 of the debentures.

If the holders do not convert their preferreds, they will receive $50 for each of the securities plus accrued interest on the redemption date.

Houston-based Hanover provides services for the oil and natural gas industry.

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