Energy Capital Partners Mezzanine Opportunities Fund and GE Energy Financial Services have provided $210 million in preferred equity in Southcross Holdings, which owns Southcross Energy Partners GP. The investment will support Southcross Holdings’ expanding operating presence in the Eagle Ford region.
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.
“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”
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.
About Southcross Holdings LP
Southcross Holdings LP owns 100% of Southcross Energy Partners GP, LLC, the general partner of Southcross, as well as a portion of Southcross’ common units, all of Southcross’ subordinated units and all of Southcross’ Class B convertible units. Holdings also owns gathering, treating and fractionating assets in South Texas.
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 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.
About GE Energy Financial Services
GE Energy Financial Services – GE’s energy investing business – works as a builder, not just a banker, to help meet the world’s power and fuel needs. We offer more than money – expertise – for essential, long-lived and capital-intensive power, oil and gas infrastructure – GE’s core business. Drawing on GE’s energy technical know-how, financial strength and risk management, we see value where others don’t and take on our customers’ toughest challenge with flexible equity and debt transaction structures. Based in Stamford, Connecticut, GE Energy Financial Services holds approximately $16 billion in assets. More information: www.genergyfinancialservices.com. Follow GE Energy Financial Services on Twitter: @GEENergyFinServ
GE (NYSE:GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health, and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company’s website at www.ge.com
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