Exterran Acquires Exterran Holdings Compression, Processing Assets
Exterran Holdings, Inc. and Exterran Partners, L.P. announced that Exterran Partners has completed its previously announced acquisition of compression and processing assets from Exterran Holdings.
The acquired assets include contracts serving approximately 40 customers of Exterran Holdings, together with approximately 400 compressor units used to provide compression services under those contracts. These compressors comprise approximately 188,000 horsepower, which represents approximately 5 percent (by available horsepower) of the combined U.S. contract operations business of Exterran Holdings and Exterran Partners. In addition, the acquired assets include approximately 140 compressor units, comprising approximately 75,000 horsepower previously leased from Exterran Holdings to Exterran Partners, and a natural gas processing plant with a capacity of ten million cubic feet per day located in the northeastern United States used to provide processing services pursuant to a long-term services agreement.
The transaction consideration includes Exterran Partners’ assumption of approximately $105.4 million of Exterran Holdings’ debt and the payment of approximately $77.4 million in cash (which includes cash paid as consideration in lieu of the 1.9 million Exterran Partners units Exterran Holdings was originally due to receive as part of its consideration in the transaction). Exterran Holdings will use the cash proceeds from the transaction to reduce the outstanding debt balance under its credit facility. Exterran Partners financed the transaction (including funds utilized to immediately repay the debt assumed from Exterran Holdings) with approximately $78.8 million of borrowings under its revolving credit facility and approximately $104.0 million of net proceeds from its recently completed underwritten public offering of common units. In connection with the transaction, Exterran Partners on March 7, 2012 amended its senior secured credit facility to, among other things, increase its size by an additional $200 million to $900 million.
Exterran Holdings, Inc. is a global market provider in full-service natural gas compression and a provider of operations, maintenance, service and equipment for oil and gas production, processing and transportation applications.
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