TETRA Technologies, Inc. (the company or TETRA) announced that it has acquired 874 891 Series A Convertible Preferred Units from CSI Compressco LP (the partnership) at a price of US$11.43 per unit, for total consideration of US$10 million, as part of the partnership's total offering of US$50 million of such units.
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, approximate, 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.
Stuart Brightman, TETRA's President and Chief Executive Officer, and Chairman of the Board of the general partner of CSI Compressco LP, commented, "With this investment, we are demonstrating our confidence in the partnership's ability to strengthen its balance sheet, provide additional liquidity, and better position itself to respond rapidly when activity levels rebound."
Additional details of the transaction are included in the company's Form 8-K filed with the Securities and Exchange Commission.
Adapted from press release by Francesca Brindle
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