Crosstex amends loan, raising pricing, modifying covenants

By Sara Rosenberg

New York, Nov. 12 - Crosstex Energy Inc. amended its credit facility, increasing pricing and revising covenants, according to a 10-Q recently filed with the Securities and Exchange Commission.

Pricing on the facility can now range from Libor plus 150 basis points to 300 bps based on leverage, instead of being able to range from Libor plus 100 bps to 175 bps.

The commitment fee now ranges from 20 bps to 50 bps, up from the previous range of 20 bps to 37.5 bps.

The amendment also increased the maximum permitted leverage ratio for the fiscal quarters ending Dec. 31 through Sept. 30, 2009, and lowered the minimum interest coverage ratio for the fiscal quarter ending Dec. 31 and each fiscal quarter thereafter.

In addition, the amendment lowers the maximum permitted leverage ratio if unsecured notes are incurred and allows the company to sell a non-strategic asset.

The amendment was completed on Nov. 7.

Bank of America is the administrative agent on the deal.

Crosstex is a Dallas-based natural gas and natural gas liquids company.

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