Southcross credit facility availability increased to $350 million

By Angela McDaniels

Tacoma, Wash., March 18 - Southcross Energy Partners, LP amended its credit agreement on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

Concurrently with the amendment, the company exercised the target leverage option established under a prior amendment and satisfied a leverage ratio of less than 4.25 times calculated on a pro forma basis for the debt outstanding and using the EBITDA, adjusted as provided in the latest amendment, for the rolling period ended Dec. 31. This had the effect of removing the $100 million availability block, returning the availability under the credit agreement to its original $350 million.

Under the latest amendment, all funds previously deposited by the company's general partner in the GP cash collateral account established under the prior amendment were released from the agent's liens and security interests and are no longer pledged as collateral.

As a result of the latest amendment and the company's exercise of the target leverage option, some other provisions of the credit agreement that had been amended reverted to the requirements and terms in effect before the prior amendment.

Among other things, the effects of the reversion are that the applicable margin has been reset to the current applicable level in the pricing grid based on the company's pro forma consolidated total leverage immediately upon closing of the latest amendment, the $25 million limit on growth capital expenditures for the 18-month period ending June 30, 2015 is no longer effective and some limitations on unit distributions imposed by the prior amendment are no longer effective.

Wells Fargo Bank, NA is the administrative agent.

Southcross Energy is a Dallas-based natural gas company.

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