A. Lee Graham
Reporter
Southcross Holdings LP of Dallas has completed a $210 million preferred equity commitment from GE Energy Financial Services and Energy Capital Partners Mezzanine Opportunities Fund.
The resulting transaction sees Southcross Holdings own 100 percent of Southcross Energy Partners GP LLC, the general partner of Southcross Energy Partners LP, limited partner interests in Southcross, and several Eagle Ford based midstream assets.
“We are excited to partner with a solid Eagle Ford gas and NGL-focused midstream company with premier sponsorship”
“We are thrilled to form a partnership with the highly experienced capital providers in Energy Capital Partners and GE Energy Financial Services,” said J. Michael Anderson, senior vice president and chief financial officer of Southcross Holdings’ general partner, commenting in a news release.
Expressing similar optimism was a GE Energy representative.
“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.
Acting as financial adviser for Southcross Holdings in the transaction was Barclays, with Sidley Austin LLP serving as legal adviser to Energy Capital Partners and GE Energy Financial Services. Weil Gotshal & Manges LLP served as legal advisor to Holdings.
Southcross Energy Partners LP provides natural gas gathering, processing, treating, compression and transportation services. Its assets are located in South Texas, Mississippi and Alabama and include four gas processing plants, two fractionation plants and about 3,000 miles of pipelines. More information is available at www.southcrossenergy.com.