Crosstex Energy Announces Private Placement for $360 Million
May 17 2006 - 8:00AM
PR Newswire (US)
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 million. "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 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. DATASOURCE: Crosstex Energy,
L.P.; Crosstex Energy, Inc. CONTACT: Jill McMillan for Crosstex
Energy, Inc., +1-214-721-9271, Web site:
http://www.crosstexenergy.com/
Copyright
Crosstex Energy, Inc. (MM) (NASDAQ:XTXI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Crosstex Energy, Inc. (MM) (NASDAQ:XTXI)
Historical Stock Chart
From Jul 2023 to Jul 2024