DALLAS--(BUSINESS WIRE)--Nov. 7, 2014--
Southcross Holdings LP (“Holdings”) announced today the completion of a
$210 million preferred equity commitment from Energy Capital Partners
Mezzanine Opportunities Fund and GE Energy Financial Services. Holdings
owns 100% of Southcross Energy Partners GP, LLC, the general partner of
Southcross Energy Partners, L.P. (NYSE:SXE) (“Southcross”), limited
partner interests in Southcross, and several Eagle Ford based midstream
The investment will enable Holdings to further integrate the assets from
the recent TexStar combination and to build out further Holdings’
operating footprint in the Eagle Ford region. Development of these
assets at Holdings will continue to enhance the significant inventory of
potential drop-downs into Southcross, creating greater opportunities for
“We are thrilled to form a partnership with the highly experienced
capital providers in Energy Capital Partners and GE Energy Financial
Services. Their financial strength, industry relationships and midstream
experience create the basis for a strong partnership to grow Southcross’
operations,” said J. Michael Anderson, Senior Vice President and Chief
Financial Officer of Southcross’ general partner.
“We are excited to partner with a solid Eagle Ford gas and NGL-focused
midstream company with premier sponsorship,” said Nazar Massouh, who
leads ECP’s energy-focused mezzanine investment activities.
"We have great confidence in the leadership at Southcross. We are
excited to use our capital and expertise to support the significant
growth opportunities that this team has developed," said John Shepherd,
Managing Director at GE Energy Financial Services.
Barclays acted as financial advisor for Holdings. Sidley Austin LLP
served as legal advisor to Energy Capital Partners and GE Energy
Financial Services. Weil Gotshal & Manges LLP served as legal advisor to
About Southcross Holdings LP
Southcross Holdings LP owns 100% of Southcross Energy Partners GP, LLC,
the general partner of Southcross, as well as a portion of Southcross’
common units, all of Southcross’ subordinated units and all of
Southcross’ Class B convertible units. Holdings also owns gathering,
treating and fractionating assets in South Texas.
About Southcross Energy Partners, L.P.
Southcross Energy Partners, L.P. is a master limited partnership that
provides natural gas gathering, processing, treating, compression and
transportation services 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 plants and
approximately 3,000 miles of pipeline. The South Texas assets are
located in or near the Eagle Ford shale region. Southcross is
headquartered in Dallas, Texas. For more information, visit www.southcrossenergy.com.
About Energy Capital Partners
Energy Capital Partners is an energy-focused private equity firm with
over $13 billion in capital commitments and offices in Short Hills,
Houston and San Diego. The firm is focused on investing in the power
generation, midstream oil and gas, environmental infrastructure,
renewable energy, electric transmission, and energy services sectors of
North America's energy industry. Its management has substantial
experience leading successful energy companies and energy infrastructure
investments. For more information, visit www.ecpartners.com.
About GE Energy Financial Services
GE Energy Financial Services – GE’s energy investing business – works as
a builder, not just a banker, to help meet the world’s power and fuel
needs. We offer more than money – expertise – for essential, long-lived
and capital-intensive power, oil and gas infrastructure – GE’s core
business. Drawing on GE’s energy technical know-how, financial strength
and risk management, we see value where others don’t and take on our
customers’ toughest challenge with flexible equity and debt transaction
structures. Based in Stamford, Connecticut, GE Energy Financial Services
holds approximately $16 billion in assets. More information: www.genergyfinancialservices.com.
Follow GE Energy Financial Services on Twitter: @GEENergyFinServ
GE (NYSE:GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in
energy, health, and home, transportation and finance. Building,
powering, moving and curing the world. Not just imagining. Doing. GE
works. For more information, visit the company’s website at www.ge.com
This press release includes certain statements concerning expectations
for the future that are forward-looking within the meaning of the
federal securities laws. Forward-looking statements include, without
limitation, any statement that may project, indicate or imply future
results, events, performance or achievements, and may contain the words
“expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “will
be,” “will continue,” “will likely result,” and similar expressions, or
future conditional verbs such as “may,” “will,” “should,” “would” and
“could.” Without limiting the generality of the foregoing,
forward-looking statements contained in this press release specifically
include the ability to complete any potential future drop-down
transaction. Although management believes the expectations and forecasts
reflected in these and other forward-looking statements are reasonable,
management can give no assurance they will prove to be correct.
Forward-looking statements contain known and unknown risks and
uncertainties (many of which are difficult to predict and beyond
management’s control) that may cause actual results in future periods to
differ materially from anticipated or projected results. Any
forward-looking statements in this press release are made as of the date
hereof and management undertakes no obligation to update or revise any
forward-looking statements to reflect new information or events.
Source: Southcross Energy Partners, L.P.
Southcross Energy Partners, L.P.
Jordan Robinson, 973-671-6137
Director, Head of Investor Relations
Managing Director, Investor Relations