HOUSTON, Jan. 26 /PRNewswire/ -- Universal Compression Holdings, Inc.
(NYSE: UCO), announced today that it has terminated its offer to purchase its
9 7/8% Senior Discount Notes due 2008. The related consent solicitation
expired at 5:00 p.m., New York City time, on January 24, 2001.
The Company's pending acquisition of Weatherford Global Compression
Services, L.P. ("WGC") and related financing transactions are not conditioned
upon the completion of the tender offer and consent solicitation.
The requisite consents from holders of the notes for the proposed
amendments to the indenture governing the notes was not received prior to the
extended deadline. Holders who have previously tendered their notes and
delivered consents to the depositary in connection with the Company's offer to
purchase and consent solicitation will have them returned. No consent fee
will be paid, nor will the Company accept any such tendered notes.
The existing 9-7/8% notes will remain outstanding and, upon consummation
of the pending WGC acquisition, will be subject to the right of the holders to
require the Company to redeem the notes at 101% of the accreted value, plus
accrued and unpaid interest, pursuant to the terms of the indenture. To the
extent holders exercise such right, the Company intends to fund the redemption
of the 9 7/8% notes under its proposed new operating lease facilities or the
new revolving credit facility. As a result of the termination of the tender
offer and consent solicitation, the Company will adjust the amount it
initially expects to fund under its new proposed asset-backed securitization
operating lease facility.
The Company first announced the tender offer and consent solicitation on
January 2, 2001, which was extended on January 21, 2001.
Forward-looking statements in this news release regarding the Company's
proposed WGC acquisition and financing transactions are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Certain important factors could prevent the consummation of such
proposed acquisition and financing transactions, including unfavorable
financing terms and conditions, failure to receive approval by the Company's
shareholders of the issuance of shares as consideration for the WGC
acquisition, the impact of general economic or business factors and other risk
factors. These risk factors, when applicable, are discussed in the Company's
filings with the Securities and Exchange Commission, copies of which are
available to the public. The Company disclaims any intention or obligation to
revise or update any forward-looking statements whether as a result of new
information, future events, or otherwise.
Universal Compression is a subsidiary of Universal Compression Holdings,
Inc., a publicly traded company (NYSE ticker symbol: UCO) founded in 1954.
Universal Compression Holdings, Inc., together with its operating subsidiary
Universal Compression, Inc., is headquartered in Houston, Texas and is a
leading natural gas compression services company, providing a full range of
rental, sales, operations, maintenance and fabrication services, and products
to the domestic and international natural gas industry.
SOURCE Universal Compression Holdings, Inc.
CONTACT: Jeffrey Todd, Manager-Investor Relations, Universal Compression Holdings, Inc., 713-335-7464