Energy Prospectus

Dan in your SXE write up you wrote: On August 19, 2015 Southcross Energy Partners, L.P. (SXE) (“Southcross”) and Southcross Holdings LP (“Holdings”) announced a new $175 million equity commitment and provided additional detail into distribution coverage and future drop-down plans.......The capital is expected to be structured to minimize any potential dilution of existing common unit holders."

Excuse my ignorance, but I'm confused on what they got for this 175 million "equity" investment. Did they get shares? If so how is that not dilutive? Was it a loan? What did they get for making this commitment?

Thanks!

Most of the money ($125 million) went into Southcross Holding LP, so not very dilutive to SXE unitholders. Go read the August 19 press release, which you can get from their website or from Yahoo Finance.

Note that the $50 million is a "commitment", so cash only goes in if SXE needs it.

The point is that they have deep pockets backing the company.