Archrock Of Ages- Exterran To Spin Off Exterran, Transform Into Archrock

If at first you don’t succeed, try, try again. Exterran Holdings (EXH) seems to have taken that motto to heart and is expected to finally complete the spinoff of its international services and global fabrications business on November 3rd. The company had been forced to delay its spinoff plans earlier this year due to a failed notes offering in the midst of ‘poor market conditions’. Just a few months later though, the company was able to secure the necessary credit facilities which actually came in a bit larger than originally planned. Amazing what a few months can do.

The spinco, which will be renamed Exterran Corporation and trade under the ticker ‘EXTN’, will ship those proceeds to the parent who will use those funds to pay down debt. The parent company will be renamed Archrock and trade under the ticker ‘AROC’. It will be a ‘pureplay’ US compression services businesses and maintain its current domestic contract operations and aftermarket services businesses. It will also retain its interests in MLP Exterran Partners (EXLP) which will also change its name to Archrock Partners LP.

Shareholders should receive one share of EXTN for every two EXH shares owned as of the date of record, October 27th. A When-Issued trading market is expected to start around then as well. Andrew Way, formerly of GE Oil & Gas, will become CEO & President of the new Exterran Corp while current CEO Bradley Childers will remain atop Archrock.

Disclosure: Author holds no position in any stock mentioned.