Southcross Holdings, LP Announces $210 Million Capital Commitment from Energy Capital Partners and GE Energy Financial Services
Southcross Holdings, LP ("Holdings" or "the Company"), 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 the general partner of Southcross Energy Partners, LP (NYSE: SXE) ("Southcross"), limited partner interests in Southcross, and several Eagle Ford based midstream assets.
The investment will enable the Company to complete the integration of assets from the recent TexStar merger and to further build out the Company' s pro–forma operating footprint in the Eagle Ford basin. Development of these assets at Holdings will continue to enhance the significant inventory of potential drop downs for Southcross, ultimately 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, CFO of Southcross.
"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.”John Shepherd
Managing Director at GE Energy Financial Services
Barclays acted as financial advisor for Southcross. 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 Southcross.
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
Managing Director, Head of Investor Relations
Managing Director, Investor Relations
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