Southcross Holdings LP Announces $210 Million Capital Commitment from Energy Capital Partners and GE Energy Financial Services
Nov 07, 2014
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 assets.
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 distribution growth.
“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 Holdings.
Source: Southcross Energy Partners, L.P.