The Crosstex Energy companies, Crosstex Energy L.P. (XTEX) and Crosstex Energy Inc. (XTXI) announced that the partnership has completed its funding for its previously announced strategic growth initiatives – phase I of the Cajun-Sibon natural gas liquids pipeline expansion, phase II of the Riverside crude project and its Ohio River Valley business expansion.
Also, Crosstex Energy GP LLC, the general partner of the partnership has amended the partnership’s agreement of limited partnership. The amendment modifies the terms of the series A convertible preferred units held by funds managed by GSO Capital Partners LP (GSO) to, among other things, provide that cash distributions to the preferred units will be paid in-kind for the next six quarters.
The partnership believes that this transaction, in conjunction with the $75 million equity placement to Kayne Anderson and the $415 million debt and equity financings completed in May 2012, provide the partnership with the financial flexibility to fund all of its committed strategic growth projects. In addition, the partnership has additional financial flexibility with more than $500 million in available liquidity and increased leverage flexibility with the recent amendment to its credit agreement.
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