Business Context and Reporting Period
This Form 8-K Current Report was filed by Exterran Holdings, Inc. (now Archrock, Inc.) on September 17, 2007. The filing discloses the termination of material definitive agreements related to the redemption of senior secured notes issued by special purpose trusts.
Key Financial Metrics
The filing details the redemption of debt instruments rather than reporting operational financial performance metrics such as revenue or profit.
- Debt Redemption (2001A Notes): $133 million of 8.5% Senior Secured Notes due 2008 were redeemed at 100% of principal plus accrued interest.
- Debt Redemption (2001B Notes): $250 million of 8.75% Senior Secured Notes due 2011 were redeemed at 102.917% of principal plus accrued interest.
- Total Principal Redeemed: $383 million.
- Liquidity Impact: The filing does not provide specific cash flow or liquidity figures, only the redemption prices.
Material Changes
On September 17, 2007, the registrant satisfied and discharged the indentures for the 2001A and 2001B Notes. Consequently, the following agreements were terminated and are no longer in force:
- Leases between the trusts and Exterran Energy Solutions, L.P. (formerly Hanover Compression Limited Partnership).
- Guarantees made by Hanover Compressor Company, EESLP, and certain subsidiaries.
- Participation agreements involving the trusts, Wilmington Trust Company, General Electric Capital Corporation, and U.S. Bank Trust National Association.
- Security agreements and assignments of leases, rents, and guarantees.
Outlook and Risks
The filing does not contain management commentary, forward-looking guidance, or specific risk factors beyond the disclosure of the debt termination. The primary event is the successful discharge of debt obligations and related collateral agreements.
Investor Verification Checklist
- Verify the total cash outflow required for the redemption, including the premium paid on the 2001B Notes (2.917% of principal).
- Confirm the impact of the terminated leases and guarantees on the company's future capital structure and asset base.
- Review subsequent filings to assess the company's remaining debt load and liquidity position following this $383 million reduction.