USA Compression Partners LP (USAC) acquired compression assets from S&R Compression LLC in Texas and Oklahoma.
In addition to the 983 compression units acquired as of the transaction effective date of, USAC is also acquiring 66 newly built compression units fabricated between July 1 and August 30 for approximately $12 million in cash as well as receiving a cash payment of approximately $4 million related to the operations of the compression assets since the effective date. The acquired compression units total approximately 148,000 horsepower.
The acquisition has been financed through the issuance of 7,425,261 USAC common units. Argonaut and the other owners of S&R Compression now own a 20% limited partner interest in USAC.
USA Compression Holdings LLC—the owner of approximately 50% of USAC’s limited partner units and the general partner interest and IDRs in USAC—and Argonaut have committed to receiving distributions in the form of additional common units through the second-quarter 2014.
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