Crosstex Energy, L.P. Announces $75 Million Private Placement Offering with Prudential.DALLAS -- Crosstex Energy, L.P. (NasdaqNM:XTEX) today announced that it has completed a private placement offering of $75 million in senior secured notes with Prudential Capital Group, an investment business of Prudential Financial Inc. (NYSE NYSE See: New York Stock Exchange :PRU PRU Prudential Financial PRU Pupil Referral Unit PRU Photographic Reconnaissance Unit PRU Potomac Rugby Union (Washington, DC) PRU Provincial Reconnaissance Unit PRU Projets de Rénovation Urbaine PRU Pruhonice ). The notes mature in 10 years, with an average life of eight years, have an annual coupon of 6.96 percent and are callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. after three years at 103.5 percent of par. The notes will be used to repay borrowings under Crosstex's revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. The notes have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. absent registration or an applicable exemption from the registration requirements under the Securities Act of 1933. "Our strategy is to maintain a conservative capital structure. Given the long-term nature of our assets, we will continue to use long-term, fixed-rate debt for a majority of the debt portion of our capital structure," stated Barry E. Davis, president and chief executive officer. "Of course, we will also continue to maintain a conservative debt to total capital ratio to finance our growth, as we have done in the past." About Crosstex Crosstex Energy, L.P., a mid-stream natural gas company headquartered in Dallas, operates over 4,500 miles of pipeline, five processing plants, and over 50 natural gas amine amine (əmēn`, ăm`ēn): see under amino group. amine Any of a class of nitrogen-containing organic compounds derived, either in principle or in practice, from ammonia (NH3). treating plants. Crosstex currently provides services for over 1.5 BCF/day of natural gas. Crosstex Energy Inc. (NasdaqNM:XTXI) owns ten million limited partner units in the Partnership, the two percent general partner interest in the Partnership, and the Partnership's incentive distribution rights. Additional information about Crosstex can be found at www.crosstexenergy.com. This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical facts, are "forward-looking statements" for purposes of these provisions. |
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