HOUSTON--(BUSINESS WIRE)--May 11, 2007--Hanover Compressor Company
(NYSE:HC) announced today the call for redemption on May 30, 2007, of
$8,121,050 aggregate principal amount of the Convertible Junior
Subordinated Debentures Due 2029 (the "Debentures") which represents
the remaining outstanding principal amount. All of the Debentures are
owned by Hanover Compressor Capital Trust (the "Trust") and the Trust
is required to use the proceeds received from such redemption to
redeem $7,873,500 aggregate liquidation amount of its 7 1/4%
Convertible Preferred Securities (CUSIP NO. 41076M3 02) and $247,550
aggregate liquidation amount of its 7 1/4% Convertible Common
Securities. Hanover Compressor Company owns all of the Common
Securities of the Trust.
Prior to 5:00 p.m., Eastern Time, on May 29, 2007, holders may
convert their Preferred Securities called for redemption on the basis
of one Preferred Security per $50 principal amount of Debentures which
will then be immediately converted into shares of Hanover Compressor
Company common stock at a price of $17.875 per share, or 2.7972 shares
of Hanover Compressor Company common stock per $50 principal amount.
Cash will be paid in lieu of fractional shares.
Alternatively, holders may have their Preferred Securities that
have been called for redemption, redeemed on May 30, 2007. Upon
redemption, holders will receive $50 for each of their Preferred
Securities, plus accrued and unpaid distributions thereon from March
15, 2006 up to but not including May 30, 2007. Any of the Preferred
Securities called for redemption and not converted on or before 5:00
p.m., Eastern Time, on May 29, 2007, will be automatically redeemed on
May 30, 2007 and no further distributions will accrue.
Holders of the Preferred Securities should complete the
appropriate instruction form for redemption or conversion, as
applicable, pursuant to The Depository Trust Company's book-entry
system and follow such other directions as instructed by The
Depository Trust Company.
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
(www.hanover-co.com).
CONTACT: Hanover Compressor Company, Houston
Vice President, Investor Relations and Technology
Stephen York, 832-554-4856
syork@hanover-co.com
SOURCE: Hanover Compressor Company