DALLAS--(BUSINESS WIRE)--May. 9, 2012--
Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) announced today
that, subject to market conditions, the Partnership and its subsidiary,
Crosstex Energy Finance Corporation, intend to offer $250 million in
aggregate principal amount of senior unsecured notes due 2022 in a
private placement to eligible purchasers under Rule 144A and Regulation
S of the Securities Act of 1933, as amended (the Securities Act).
The Partnership intends to use the net proceeds from this offering to
fund a portion of the consideration payable by the Partnership in
connection with its previously announced agreement to acquire Clearfield
Energy, Inc. and for general partnership purposes, including capital
expenditures for the Cajun-Sibon natural gas liquids pipeline expansion.
Pending such use, the net proceeds will be placed into an escrow
account. If the acquisition does not close by August 31, 2012, the notes
will be redeemed at 100% of the principal amount, plus accrued and
unpaid interest to the redemption date.
The securities to be offered have not been registered under 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. The senior unsecured notes are expected to be eligible
for trading by qualified institutional buyers under Rule 144A and
non-U.S. persons under Regulation S. This announcement is being issued
pursuant to Rule 135c under the Securities Act and shall not constitute
an offer to sell or a solicitation of an offer to buy any of these
securities nor shall there be any sale of these securities in any state
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in
Dallas, operates approximately 3,300 miles of pipeline, ten processing
plants and three fractionators. The Partnership currently provides
services for 3.2 billion cubic feet of natural gas per day, or
approximately six percent of marketed U.S. daily production.
Crosstex Energy, Inc. owns the two percent general partner interest, a 25
percent limited partner interest and the incentive distribution
rights of Crosstex Energy, L.P.
This press release contains forward-looking statements. These
statements are based on certain assumptions made by the Partnership
based upon management’s experience and perception of historical trends,
current conditions, expected future developments and other factors the
Partnership believes are appropriate in the circumstances. These
statements include, but are not limited to, statements with respect to
the Partnership’s private placement of senior notes and the contemplated
acquisition of Clearfield Energy, Inc. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond
the control of the Partnership, which may cause the Partnership’s actual
results to differ materially from those implied or expressed by the
forward looking statements. These risks include, but are not limited to,
risks discussed in the Partnership’s filings with the Securities and
Exchange Commission. The Partnership has no obligation to publicly
update or revise any forward-looking statement, whether as a result of
new information, future events or otherwise.
Source: Crosstex Energy, L.P.
Crosstex Energy, L.P.
Jill McMillan, 214-721-9271
Public & Industry Affairs