SEC Comment Letter for USA Compression Partners, LP (USAC) (CIK 0001522727) (USAC) — Apr 8, 2014
USA Compression Partners, LP (USAC) (CIK 0001522727)
Date: April 8, 2014 · CIK: 0001522727 · Accession: 0000000000-14-017456
AI Filing Summary & Sentiment
Referenced dates: March 4, 2014
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April 7, 2014 Via E -mail Eric D. Long President and Chief Executive Officer USA Compression Partners, LP USA Compression Finance Corp. 100 Congress Avenue, Suite 450 Austin, TX 78701 Re: USA Compression Partners, LP Amendment No. 1 to Registration Statement on Form S-3 Filed March 19, 2014 File No. 333 -193724 Dear Mr. Long: We have limited our review of your amended registration statement to those issues we have addressed in our comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure. Please respond to this letter by amending your registration statement and providing the requested information . Where you do not believe our comments apply to your facts and circumstances or do not believe an amendment is appropriate, please tell us why in your response. After reviewing any amendment to your registration statement and the information you provide in response to these comments, we may have additional comments. General 1. We note your response and revised disclosure in response to comment 1 in our letter dated March 4, 2014 that USA Compression Finance Corp., USA Compression Partners, LLC, USAC Leasing, LLC, USAC Leasi ng 2, LLC and USAC OpCo 2, LLC are “wholly -owned” subsidiaries of USA Compression Partners, LP. Pursuant to Rule 3 - 10(f) of Regulation S -X, each such subsidiary must be “100% owned” by USA Compression Partners, LP. Please advise or revise. 2. If true, plea se supplementally confirm and revise your disclosure to clarify that, if any of the subsidiary guarantors identified in the registration statement will guarantee the debt issued by USA Compression Partners, LP and USA Compression Finance Corp., then all of the subsidiary guarantors identified in the registration statement will guarantee such debt. In this regard we note your disclosure that “one or more” of the subsidiary Eric D. Long USA Compression Partners, LP USA Compression Finance Corp. April 7, 2014 Page 2 guarantors may guarantee the debt, as well as the requirement of Rule 3 -10(f) that al l of a registrant’s non -minor subsidiaries serve as guarantors. 3. We note your statement that “USA Compression Finance Corp. . . . has no material assets or any liabilities other than as a co -issuer of debt securities.” Please revise your disclosure to cla rify this statement. In this regard, we note that, because USA Compression Finance Corp. is a non -guarantor subsidiary, it must be a “minor” subsidiary. Refer to Rule 3 -10(f) of Regulation S -X. 4. We note your response to comment 2 in our letter dated Marc h 4, 2014 . Given that USA Compression Holdings, LLC is your parent, the resale of units by USA Compression Holdings represents a primary offering. Please refer to Securities Act Rules Compliance and Disclosure Interpretation 212.15. Please revise your p rospectus to identify USA Compression Holdings as an underwriter within the meaning of Section 2(a)(11) of the Securities Act and to reflect that the offering by USA Compression Holdings is a primary offering. 5. We note your response to comment 3 in our let ter dated March 4, 2014 . Given that Argonaut Private Equity, L.L.C. is proposing to sell common units representing 93.7% of the public float, we believe that the resale by Argonaut represents a primary offering. Please revise your prospectus to identify Argonaut as an underwriter within the meaning of Section 2(a)(11) of the Securities Act and to reflect that the offering by Argonaut if a primary offering. Alternatively, please substantially reduce the number of shares being offered for resale by Argonau t. Exhibit 5.1. Opinion of Vinson & Elkins L.L.P. 6. We note your response to comment 7 in our letter dated March 4, 2014. Please revise the assumption in (iii) of the second paragraph on page 2, as it is inappropriate to assume the legal authority of per sons signing on behalf of companies represented by counsel. We urge all persons who are responsible for the accuracy and adequacy of the disclosure in the filing to be certain that the filing includes the information the Securities Act of 193 3 and all app licable Securities Act rules require. Since the company and its management are in possession of all facts relating to a company’s disclosure, they are responsible for the accuracy and adequacy of the disclosures they have made. Eric D. Long USA Compression Partners, LP USA Compression Finance Corp. April 7, 2014 Page 3 Please contact Dean Brazier, Staff Attorney , at 202.551.3485, Lilyanna Peyser, Special Counsel, at 202.551.3222, or me at 202.551.3720 with any other questions. Sincerely, /s/ Mara L. R ansom Mara Ransom Assistant Director cc: E. Ramey Layne