Crosstex Energy obtains $100 million credit facility

By Sara Rosenberg

New York, June 4 - Crosstex Energy LP closed on a new $100 million revolving senior secured credit facility due in June 2006. Union Bank of California, Fleet National Bank, Royal Bank of Canada and US Bank are members of the bank syndicate.

The facility consists of a $70 million revolver for acquisitions and a $30 million revolver for working capital. The initial interest rate on the outstanding amounts under the revolver is 4¼%, according to a company spokesperson.

In addition to the revolver, the company has obtained an institutional shelf facility of $50 million from Prudential Capital Group. The Dallas gas company has drawn $30 million under the institutional facility, which bears interest at a rate of 6.95% and matures in June 2010. The pricing of the remaining $20 million available under the facility will be determined in the future.

Proceeds from the revolver and the shelf facility will be used for general corporate purposes and to fund the previously announced acquisition of assets from Duke Energy Field Services, LP.

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