OKLAHOMA CITY, Okla., July 20, 2014 /PRNewswire/ -- Compressco Partners, L.P. (Compressco or the Partnership) (NASDAQ: GSJK) announced today that it has commenced a private offering, with its wholly owned subsidiary Compressco Finance Corp., of $350 million in aggregate principal amount of senior notes due 2022 (the "Notes Offering"). The Notes Offering is subject to market conditions, and there can be no assurance as to whether the Notes Offering will be completed or as to the actual size or terms of the Notes Offering.
Compressco Partners expects to use the net proceeds from the Notes Offering to fund a portion of the purchase price and related expenses of its pending acquisition of Compressor Systems, Inc. (the "Acquisition") and the repayment of borrowings under its existing revolving credit agreement, if any. The closing of the Notes Offering is contingent upon (i) the substantially simultaneous closing of the Acquisition, (ii) the prior or substantially simultaneous funding of the remaining sources of proceeds for the Acquisition, (iii) the repayment of borrowings under its existing revolving credit agreement and related expenses. Under the Notes Offering, the notes will be offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons, other than U.S. persons, outside of the United States pursuant to Regulation S under the Securities Act. The offer and sale of the notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This press release does not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities, and does not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.