Crosstex Announces Private Placement of Equity
June 24 2005 - 2:15PM
PR Newswire (US)
Crosstex Announces Private Placement of Equity DALLAS, June 24
/PRNewswire-FirstCall/ -- Crosstex Energy, L.P. (NASDAQ:XTEX) (the
Partnership) announced the placement of approximately 1,495,000
Senior Subordinated Units to Kayne Anderson MLP Investment Company
and two funds managed by Tortoise Capital Advisers, LLC. The Senior
Subordinated Units were purchased at $33.44 each, and convert to
Common Units (on a one-for-one basis) on February 24, 2006. Until
their conversion to Common Units, the Senior Subordinated Units
will receive no distributions from the Partnership. Kayne Anderson
is buying 70 percent of the Senior Subordinated Units and Tortoise
is buying 30 percent of the Units. Net proceeds from the private
placement, including the general partner's proportionate capital
contribution and expenses associated with the sale, will be
approximately $51.1 million. "The placement of this equity, which
will receive no distribution, allows us to continue the
construction of our North Texas Pipeline, with no dilutive effect
to our distributable cash flow during the construction phase, while
continuing to maintain our conservative balance sheet," said Barry
E. Davis, Chief Executive Officer of Crosstex. "We anticipate that
the Senior Subordinated Units will not convert to Common Units and
be eligible for a distribution until after the scheduled completion
of our North Texas Pipeline construction." In connection with the
sale of the units, Crosstex has entered into a registration rights
agreement providing for the registered sale of the Common Units
underlying the Senior Subordinated Units. The Senior Subordinated
Units 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 Senior Subordinated Units 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 news release does not constitute an
offer to sell or a solicitation of an offer to buy the securities
described herein. About Crosstex Crosstex Energy, L.P., a
mid-stream natural gas company headquartered in Dallas, owns over
4,500 miles of pipeline, five processing plants, 140 natural gas
amine treating plants and 23 dew point suppression plants. Crosstex
currently provides services for approximately 1.9 BCF/day of
natural gas. Crosstex Energy, Inc. (NASDAQ:XTXI) owns the general
partner, a 54-percent limited partner interest and the incentive
distribution rights of Crosstex Energy, L.P. Additional information
about the Crosstex companies can be found at
http://www.crosstexenergy.com/ . 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: Barry E. Davis, President and Chief
Executive Officer William W. Davis, Executive V.P. and Chief
Financial Officer Phone: (214) 953-9500 DATASOURCE: Crosstex
Energy, L.P. CONTACT: Barry E. Davis, President and Chief Executive
Officer, or William W. Davis, Executive V.P. and Chief Financial
Officer, both of Crosstex Energy, L.P., +1-214-953-9500 Web site:
http://www.crosstexenergy.com/
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