DALLAS, Texas, Jan. 03, 2017 (GLOBE NEWSWIRE) -- Southcross Energy Partners, L.P. (NYSE:SXE) (“Southcross”) announced today that it has secured an amendment to its revolving credit agreement. The amendment provides for a full two-year suspension of leverage covenants in the credit agreement through 2018. The amendment also effects a reduction of the total revolver commitment from $200 million to $145 million, with further reductions to $115 million by December 31, 2018 and establishes certain additional covenant requirements. The amendment also provides for a new $15 million funding commitment from Southcross’ parent company, which in turn is supported by contingent funding commitments from certain of the parent’s shareholders in the form of equity or unsecured debt to be made no later than December 31, 2017.
Associated with the amendment, a $17 million investment in Southcross by the parent of its general partner has been made and will be used to pay down revolver borrowings and for general partnership purposes. Approximately 11.5 million Southcross common units were issued in exchange for the investment.
“We are very pleased to have accomplished this amendment with the support of our revolving credit lenders,” said Bret M. Allan, Senior Vice President and Chief Financial Officer. “We believe the leverage covenant relief, along with these new financial investments, provides Southcross with a two-year pathway to reestablish its financial health through successful execution of its business plan as our producing basins recover.”
Additional details on the above described amendment and agreements are set forth in a Current Report on Form 8-K that was filed with the Securities and Exchange Commission today.
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 two gas processing plants, one fractionation plant and approximately 3,100 miles of pipeline. The South Texas assets are located in or near the Eagle Ford shale region. Southcross is headquartered in Dallas, Texas. Visit www.southcrossenergy.com for more information.
Forward-Looking Statements
This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements, including statements related to the expected recovery in producing basins, the financial relief afforded Southcross by the credit agreement amendment and the ability of relevant parties to contribute additional funds pursuant to the referenced investment agreement. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although Southcross believes that the expectations reflected in the forward-looking statements are reasonable, Southcross can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings made by Southcross with the Securities and Exchange Commission (“SEC”). Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed by Southcross with the SEC, including Southcross’ Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and its Quarterly Reports on Form 10-Q for the fiscal quarters ended after such fiscal year. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” Forward-looking statements speak only as of the date of the document in which they are contained, and Southcross does not undertake any duty to update any forward-looking statements except as may be required by law.