DALLAS, May 17 /PRNewswire-FirstCall/ -- Crosstex Energy, L.P.
(Nasdaq: XTEX) (the Partnership) today announced that it had executed
agreements to issue approximately 12.8 million senior subordinated units for
aggregate proceeds of $360 million. The units will convert to common units on
February 16, 2008, and until that time, will not participate in the cash
distributions of the Partnership. The financing is being done in order to
fund a portion of the Partnership's agreement to acquire the natural gas
gathering pipeline systems and related facilities of Chief Holdings LLC, which
was announced in early May 2006, as well as the Partnership's previously
announced capital projects. The financing is expected to close concurrently
with the closing of the acquisition from Chief.
Crosstex Energy, Inc. (Nasdaq: XTXI) (the Corporation) has agreed to
purchase $180 million of the senior subordinated units. To finance its
purchase of the units, the Corporation has agreed to sell approximately 2.5
million shares of common stock in a private placement for approximately $180
"The issuance of these senior subordinated units is a very positive
indication of confidence in Crosstex's long-term plan for growth.
Additionally, it puts the Partnership in an excellent position to fund its
previously announced growth programs," said Barry E. Davis, President and
Chief Executive Officer. "We are excited by the strong financial support we
have received from the investment community."
The securities to be offered have not been registered under the Securities
Act of 1933, as amended, (the "Securities Act"), or any state securities laws,
and unless so registered, the securities may not be offered or sold in the
United States except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act and applicable
state securities laws. This announcement shall not constitute an offer to sell
or a solicitation of an offer to buy any of these securities.
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in
Dallas, operates over 5,000 miles of pipeline, ten processing plants, four
fractionators, and approximately 150 natural gas amine treating plants and 22
dew point control plants. Crosstex currently provides services for over 3.0
Bcf/day of natural gas, or approximately 6.0 percent of marketed U.S. daily
production based on August 2005 Department of Energy data.
Crosstex Energy, Inc. owns the two percent general partner interest, a 38
percent limited partner interest, and the incentive distribution rights of
Crosstex Energy, L.P.
Additional information about the Crosstex companies can be found at
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements other
than statements of historical facts included herein constitute forward-looking
statements. Although the companies believe that the expectations reflected in
the forward-looking statements are reasonable, they can give no assurance that
such expectations will prove to be correct.
SOURCE Crosstex Energy, L.P.; Crosstex Energy, Inc.
/CONTACT: Jill McMillan for Crosstex Energy, Inc., +1-214-721-9271,
/Web site: http://www.crosstexenergy.com /
CO: Crosstex Energy, L.P.; Crosstex Energy, Inc.
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0615 05/17/2006 07:00 EDT http://www.prnewswire.com