HOUSTON--(BUSINESS WIRE)--Jan. 8, 2007--Hanover Compressor Company
(NYSE:HC) announced today completion of the partial redemption of
$20,871,000 aggregate principal amount of Convertible Junior
Subordinated Debentures Due 2029 (the "Debentures"). All of the
Debentures are owned by Hanover Compressor Capital Trust (the "Trust")
and the Trust was required to use the proceeds received from such
redemption to redeem $20,245,000 aggregate liquidation amount of its 7
1/4% Convertible Preferred Securities (CUSIP NO. 41076M302) ("TIDES
Preferred Securities") and $626,000 aggregate liquidation amount of
its 7 1/4% Convertible Common Securities. Hanover Compressor Company
owns all of the Common Securities of the Trust. The Debentures were
called on December 15, 2006 for redemption on Thursday, January 4,
2007.
Of the $20,245,000 of TIDES Preferred Securities called,
$20,052,700 was converted into 1,121,800 shares of Hanover Common
Stock. Hanover expects its related annual interest expense to be
reduced by approximately $1.5 million.
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 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. 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
at 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
and processing 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; our inability to
implement certain business objectives, such as international expansion
(including our ability to timely and cost-effectively execute projects
in new international operating environments), 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.
CONTACT: Hanover Compressor Company, Houston
Vice President, Investor Relations and Technology
Stephen York, 832-554-4856
syork@hanover-co.com
SOURCE: Hanover Compressor Company