HOUSTON, Nov 21, 2005 (BUSINESS WIRE) -- Hanover Compressor Company (NYSE:HC), 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, announced
today that it has closed a five-year, $450 million senior secured
revolving credit facility with a syndicate of lenders and financial
institutions. This facility replaces the company's $350 million bank
credit facility that was due to mature in December 2006.
"In addition to providing Hanover the ability to pursue attractive
growth opportunities, the new revolving line of credit gives Hanover
the ability to reduce its financing costs and has extended its credit
facility maturity date," said Lee Beckelman, Vice President and Chief
Financial Officer.
The new credit facility was closed with JPMorgan Securities Inc.,
and RBS Securities Corporation, as Co-Lead Arrangers; JPMorgan Chase
Bank, N.A., as Administrative Agent; and The Royal Bank of Scotland
plc as Syndication Agent.
About Hanover Compressor Company
Hanover Compressor Company (NYSE:HC) 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 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. Founded in 1990 and a public company
since 1997, Hanover's customers include both major and independent oil
and gas producers and distributors as well as national oil and gas
companies. More information can be found on the Internet
(www.hanover-co.com).
Forward-looking Statements
Certain matters discussed in this presentation are
"forward-looking statements" intended to qualify for the safe harbors
established by the Private Securities Litigation Reform Act of 1995
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements can generally be identified as such
because of the context of the statement or because the statement
includes words such as "believes," "anticipates," "expects,"
"estimates," or words of similar import. Similarly, statements that
describe Hanover's future plans, objectives or goals or future
revenues or other financial measures are also forward-looking
statements. Such forward-looking statements are subject to risks and
uncertainties that could cause our actual results to differ materially
from those anticipated as of the date the statements were made. These
risks and uncertainties include, but are not limited to: our inability
to renew our short-term leases of equipment with our customers so as
to fully recoup our cost of the equipment; a prolonged substantial
reduction in oil and natural gas prices, which could cause a decline
in the demand for our compression and oil and natural gas production
equipment; reduced profit margins or the loss of market share
resulting from competition or the introduction of competing
technologies by other companies; changes in economic or political
conditions in the countries in which we do business, including civil
uprisings, riots, terrorism, the taking of property without fair
compensation and legislative changes; changes in currency exchange
rates; the inherent risks associated with our operations, such as
equipment defects, malfunctions and natural disasters; governmental
safety, health, environmental and other regulations, which could
require us to make significant expenditures including our ability to
timely and cost-effectively execute projects in new international
operating environments; our inability to implement certain business
objectives such as international expansion, integrating acquired
businesses, generating sufficient cash, accessing capital markets,
refinancing existing or incurring additional indebtedness to fund our
business, and executing our exit and sale strategy with respect to
assets classified on our balance sheet as assets held for sale; risks
associated with any significant failure or malfunction of our
enterprise resource planning system and our inability to comply with
covenants in our debt agreements and the decreased financial
flexibility associated with our substantial debt. A discussion of
these and other factors is included in the Company's periodic reports
filed with the Securities and Exchange Commission.
SOURCE: Hanover Compressor Company
Hanover Compressor Company, Houston
Investor Relations Inquiries:
Stephen York, 832-554-4856
syork@hanover-co.com
or
Media Relations Inquiries:
Richard Goins, 832-554-4918
rbgoins@hanover-co.com