SXE suspends distribution
Posted: Fri Jan 08, 2016 6:53 am
Southcross Energy 1717 Main Street, Suite 5200, Dallas, Texas 75201, 214-979-3720
Southcross Energy Partners, L.P. Announces Actions to Enhance Liquidity
DALLAS, Texas, January 8, 2016 - Southcross Energy Partners, L.P. (NYSE:SXE) (“Southcross”) today announced recent actions to enhance its liquidity position. Specific actions include a suspension of its quarterly cash distributions to unit holders and the closing of a $14 million unsecured loan (the “Unsecured Loan”). The Unsecured Loan is being provided by funds managed by EIG Global Energy Partners and Tailwater Capital and has a one-year term with interest at 7% per annum, payable in cash or, at the option of Southcross, in additional notes, such interest not due and payable until maturity.
David Biegler, Chairman of the board of directors of Southcross’ general partner, stated: “Given the current low commodity pricing cycle and the effect that this is having on the development plans of our producer customers, Southcross’ management and board of directors, after careful consideration, believe it is prudent for Southcross to bolster its liquidity through the suspension of the distributions and the unsecured financing and that these actions are in the best interests of the Southcross unitholders”.
John Bonn, President and Chief Executive Officer of Southcross, added: “We believe that the additional liquidity generated from the financing, coupled with the suspension of our distributions, will allow us to advance our efforts to develop a comprehensive plan that will address our balance sheet. We have retained advisors to assist in this effort.”
Southcross and its affiliate, Southcross Holdings LP ("Holdings") have retained Kirkland & Ellis LLP, as legal advisor, and Houlihan Lokey, Inc., as financial advisor, to advise the management and boards of directors of Southcross and Holdings regarding potential strategic alternatives and capital structure matters.
About Southcross Energy Partners, L.P.
Southcross Energy Partners, L.P. is a master limited partnership that provides natural gas gathering, compression, treating, processing and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama and include four gas processing plants, two fractionation facilities and approximately 3,200 miles of pipeline. The South Texas assets are located in or near the Eagle Ford Shale region. Southcross is headquartered in Dallas, Texas. Visit www.southcrossenergy.com for more information.
Southcross Energy Partners, L.P. Announces Actions to Enhance Liquidity
DALLAS, Texas, January 8, 2016 - Southcross Energy Partners, L.P. (NYSE:SXE) (“Southcross”) today announced recent actions to enhance its liquidity position. Specific actions include a suspension of its quarterly cash distributions to unit holders and the closing of a $14 million unsecured loan (the “Unsecured Loan”). The Unsecured Loan is being provided by funds managed by EIG Global Energy Partners and Tailwater Capital and has a one-year term with interest at 7% per annum, payable in cash or, at the option of Southcross, in additional notes, such interest not due and payable until maturity.
David Biegler, Chairman of the board of directors of Southcross’ general partner, stated: “Given the current low commodity pricing cycle and the effect that this is having on the development plans of our producer customers, Southcross’ management and board of directors, after careful consideration, believe it is prudent for Southcross to bolster its liquidity through the suspension of the distributions and the unsecured financing and that these actions are in the best interests of the Southcross unitholders”.
John Bonn, President and Chief Executive Officer of Southcross, added: “We believe that the additional liquidity generated from the financing, coupled with the suspension of our distributions, will allow us to advance our efforts to develop a comprehensive plan that will address our balance sheet. We have retained advisors to assist in this effort.”
Southcross and its affiliate, Southcross Holdings LP ("Holdings") have retained Kirkland & Ellis LLP, as legal advisor, and Houlihan Lokey, Inc., as financial advisor, to advise the management and boards of directors of Southcross and Holdings regarding potential strategic alternatives and capital structure matters.
About Southcross Energy Partners, L.P.
Southcross Energy Partners, L.P. is a master limited partnership that provides natural gas gathering, compression, treating, processing and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama and include four gas processing plants, two fractionation facilities and approximately 3,200 miles of pipeline. The South Texas assets are located in or near the Eagle Ford Shale region. Southcross is headquartered in Dallas, Texas. Visit www.southcrossenergy.com for more information.