DALLAS--(BUSINESS WIRE)--March 26, 2007--Crosstex Energy, L.P.
(NASDAQ: XTEX) (the Partnership) announced that on March 23, 2007, it
sold approximately 3.9 million Senior Subordinated Series D Units in a
private placement for aggregate proceeds of approximately $100
million. The units will convert to common units on March 23, 2009. The
financing will be used to repay indebtedness associated with the
Partnership's growth program.
"We believe that the issuance of the Senior Subordinated Series D
Units, along with our existing credit facilities, will provide the
capital we need to fund our existing announced projects while
maintaining a conservative capital structure," said Barry E. Davis,
Crosstex President and Chief Executive Officer. "We are gratified that
we have received this strong support from the investment community."
The Senior Subordinated Series D Units were priced using the
recent average trading price of the common units. The price took into
account that holders of the securities will not receive Partnership
cash distributions for two years and the securities lack of liquidity
during that period. The private placement was led by Lehman Brothers
MLP Opportunity Fund L.P. and included ING Investment Management, LLC;
Citigroup Global Markets Inc.; funds managed by Tortoise Capital
Advisors, LLC; and Fiduciary Asset Management, LLC.
The securities referred to 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, 12
processing plants, four fractionators, and approximately 160 natural
gas amine-treating plants in service and approximately 35 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 2006 Department of Energy data.
Crosstex Energy, Inc. owns the two percent general partner
interest, a 42 percent limited partner interest, and the incentive
distribution rights of Crosstex Energy, L.P.
Additional information about the Crosstex companies can be found
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.
CONTACT: Crosstex Energy
Crystal C. Bell, 214-721-9407
Investor Relations Specialist
Jill McMillan, 214-721-9271
Public Relations Specialist
SOURCE: Crosstex Energy, L.P.