Net Proceeds to Reduce Leverage
DALLAS--(BUSINESS WIRE)--Aug. 6, 2009--
Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) announced today
the completion of the sale of its Mississippi, Alabama and South Texas
assets to Southcross Energy, LLC, a Dallas-based natural gas
transportation and processing company for $220 million. Crosstex will
use the net proceeds from the transaction to repay approximately $212
million of the Partnership’s outstanding debt, which will satisfy the
targets for debt reductions in September 2009 and December 2009
established in the Partnership’s amendments to its debt facilities.
“Completion of this sale is a significant step in the execution of our
plan, and it will allow us to reduce debt,” said Barry E. Davis,
Crosstex President and Chief Executive Officer. “As we have previously
stated, asset sales are an important part of our deleveraging
initiatives, and we will continue to explore other transactions that we
believe are in the best interests of the company and our stakeholders.”
Goldman, Sachs & Co. served as the exclusive financial advisor to
Crosstex in connection with the transaction.
Crosstex to Hold Second-Quarter Earnings Conference Call Tomorrow,
Friday, August 7
The Partnership and Crosstex Energy, Inc. (NASDAQ:XTXI) (the
Corporation) will hold their quarterly conference call to discuss
second-quarter 2009 results tomorrow, Friday, August 7, at 10:00 a.m.
Central Time (11:00 a.m. Eastern Time). The dial-in number for the call
is 1-888-679-8037. Callers outside the United States should dial
1-617-213-4849. The passcode for all callers is 54146916. Investors are
advised to dial in to the call at least 10 minutes prior to the call
time to register. Participants may preregister for the call at https://www.theconferencingservice.com/prereg/key.process?key=PHXYKGDFH.
Preregistrants will be issued a pin number to use when dialing in to the
live call, which will provide quick access to the conference by
bypassing the operator upon connection. Interested parties also can
access a live Web cast of the call on the Investors page of Crosstex’s
Web site at www.crosstexenergy.com.
After the conference call, a replay can be accessed until November 4,
2009, by dialing 1-888-286-8010. International callers should dial
1-617-801-6888 for a replay. The passcode for all callers listening to
the replay is 59024267. Interested parties also can visit the Investors
page of Crosstex’s Web site to listen to a replay of the call.
About the Crosstex Energy Companies
After the closing of the assets sale, Crosstex Energy, L.P., a midstream
natural gas company headquartered in Dallas, operates approximately
3,300 miles of pipeline, 10 processing plants, three fractionators, and
approximately 180 natural gas amine-treating plants and dew-point
control plants. The Partnership currently provides services for 3.2
billion cubic feet per day of natural gas, or approximately six percent
of marketed U.S. daily production.
Crosstex Energy, Inc. owns the two percent general partner interest, a
33 percent limited partner interest, and the incentive distribution
rights of Crosstex Energy, L.P.
Additional information about the Crosstex companies can be found at www.crosstexenergy.com.
About Southcross Energy, LLC
Southcross Energy, LLC, headquartered in Dallas, is a newly formed
midstream natural gas company. It was established with the management
team of Estrella Energy, LP and Charlesbank Capital Partners. For
additional information about Southcross Energy, contact Rick Lemmon at
214-393-7506 or by email at firstname.lastname@example.org
About Charlesbank Capital Partners, LLC
Charlesbank Capital Partners, LLC is a middle-market private equity
investment firm managing more than $1.5 billion of capital. Charlesbank
focuses on management-led buyouts and growth capital financings,
typically investing $25 million to $100 million per transaction in
companies with enterprise values of $50 million to $750 million. The
firm seeks to partner with strong management teams to build companies
with sustainable competitive advantages and excellent prospects for
growth. For more information, visit www.charlesbank.com.
Source: Crosstex Energy, L.P.
Crosstex Energy, L.P.
Jill McMillan, 214-721-9271
Public & Industry Affairs