Crosstex Energy Announces $100 Million Private Placement
March 26 2007 - 7:30AM
Business Wire
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 at
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.
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