TETRA Technologies Inc. (NYSE: TTI) has acquired 874,891 Series A Convertible Preferred Units from CSI Compressco LP (the partnership) (NASDAQ: CCLP) at a price of $11.43 per unit, for total consideration of $10 million, as part of the partnership's total offering of $50 million of such units.
On August 8, CSI Compressco LP announced the close of a private placement of approximately 4.4 million Series A Convertible Preferred Units at a cash purchase price of $11.43 per Preferred Unit pursuant to a Series A Preferred Unit Purchase Agreement with purchasers. The partnership will receive net proceeds, after deducting offering expenses and transaction fees, from the private placement of approximately $48 million. Net proceeds will be used to reduce the partnership's outstanding indebtedness. Evercore Group LLC is acting as the partnership's financial advisor for the transaction and the primary purchasers include, among others, affiliates of Hudson Bay Capital Management LP and TETRA Technologies, Inc. (NYSE: TTI).
When the private placement is complete, TETRA's ownership interest in CSI Compressco LP will be 42.4% of the outstanding common units, 20% of the outstanding preferred units, and the approximately 2% general partner interest, including IDRs. CSI Compressco GP Inc., an indirect, wholly owned subsidiary of TETRA, is the general partner of CSI Compressco LP.