New User:

Forgot your password?

Stock Market & Financial Investment News

News Breaks
July 20, 2014
20:02 EDTGSJK, TTITetra Technologies announces Compressco to purchase CSI for $825M in cash
TETRA Technologies (TTI) announced that its majority owned, publicly-traded partnership, Compressco Partners (GSJK), has entered into a definitive agreement to purchase all the outstanding shares of Compressor Systems, CSI, for $825M in cash, subject to working capital and other adjustments.This acquisition is expected to increase Compressco's total horsepower offering from approximately 187,000 to over 1,045,000, and will allow Compressco to utilize an expanded range of compressor packages for compression services to customers. It is anticipated that this expansion of Compressco's service offerings will allow the Partnership to participate in the compression market at a broader level. For the twelve months ended March 31, CSI's aggregate revenues were $311M, and EBITDA was $82.3M. Compressco has obtained committed financing to complete the transaction, which is expected to close in early August. However, it is currently anticipated that financing will include Compressco's issuance of approximately $400M of public equity and $350M of publicly-rated senior notes, with the balance being drawn from a $400M revolving credit facility. TETRA expects to purchase common units in the equity offering and make contributions to maintain its approximate 2% general partner interest in an aggregate amount of up to $40M. Stuart Brightman, TETRA's President and CEO, and Chairman of the Board of Compressco, commented, "This acquisition is the next step in a series of strategic moves to position TETRA to generate improved and more predictable earnings and cash flows. We are excited to acquire a company with such a strong reputation in the industry, a diverse product offering, a solid management team, and a robust customer base. In addition, we believe that this acquisition will allow TETRA to significantly increase our cash flow from Compressco. We expect to create synergies of between $5M and $10M on an annualized basis, beginning in 2015." The combined organization will be led by Tim Knox, CSI's current President. Ron Foster will take on the role of Senior Vice President and Chief Marketing Officer, and James Rounsavall will serve as CFO. Brightman continued, "Based on a number of specific assumptions, we understand that Compressco management expects to be able to recommend to its Board of Directors a 12-14% increase in the cash distribution per outstanding common unit attributable to the quarter ending December 31, compared to the $0.4525 distribution per outstanding unit, or $1.81 per outstanding unit on an annualized basis, attributable to quarter ended June 30. To meet the strong demand for compression services, following the acquisition, we expect to grow capital expenditures to between $90M and $100M in 2015, which will provide incremental revenues and is expected to facilitate additional increases in cash distributions. Compressco currently expects to generally maintain a coverage ratio of 1.2 times distributable cash flow to distributions, consistent with our past practices." Following the transaction, it is currently expected that TETRA's ownership of the Partnership will be reduced to approximately 46%. TETRA will maintain 100% ownership of the Partnership's general partner, and will continue to consolidate the results of Compressco in its financial statements.
News For GSJK;TTI From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
October 20, 2014
08:17 EDTGSJKCompressco board increases quarterly dividend to 46c
Compressco announced that the board of its general partner has declared a cash distribution attributable to the quarter ended September 30, 2014 of 46c per outstanding unit, or $1.84 per outstanding unit on an annualized basis. This amount is an increase over the previous distribution of 45.25c, and an increase of 3c per outstanding unit over the distribution of 43c attributable to the third quarter of 2013. This cash distribution will be paid on November 14, 2014 to all unitholders of record as of the close of the business on October 31, 2014.
October 15, 2014
07:12 EDTTTITetra Technologies initiated with a Buy at ISI Group
Subscribe for More Information

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the disclaimer & terms of use