Crosstex $420 million revolver pricing at Libor plus 325 to 425 bps

By Sara Rosenberg

New York, Feb. 16 - Crosstex Energy LP's new $420 million four-year senior secured revolving credit facility carries pricing that can range from Libor plus 325 basis points to 425 bps based on leverage, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The commitment fee under the revolver is 50 bps.

Covenants include a maximum leverage ratio of 5.75 to 1.00 for the fiscal quarters ending March 31 and June 30, 5.50 to 1.00 for the fiscal quarters ending Sept. 30, 2010, 5.25 to 1.00 for the fiscal quarters ending Dec. 31, 2010, 5.00 to 1.00 for the fiscal quarters ending March 31, 2011, 4.75 to 1.00 for the fiscal quarters ending June 30, 2011, and 4.50 to 1.00 for the fiscal quarter ending Sept. 30, 2011 and thereafter.

There is also maximum permitted senior leverage ratio is 2.50 to 1.00.

And, there is a minimum consolidated interest coverage ratio of 1.50 to 1.00 for the fiscal quarters ending March 31, 1.75 to 1.00 for the fiscal quarters ending June 30 through Dec. 31, 2010, 2.00 to 1.00 for the fiscal quarters ending March 31, 2011, 2.25 to 1.00 for the fiscal quarters ending June 30, 2011, and 2.50 to 1.00 for any fiscal quarter ending Sept. 30, 2011 and thereafter.

Bank of America acted as the lead arranger, bookrunner and administrative agent on the deal that was completed on Feb. 10.

Proceeds were used to help fund the company's recapitalization.

Also, as part of the recapitalization, the company completed a private placement of $725 million of 8.875% senior unsecured notes due Feb. 15, 2018.

Proceeds from the senior unsecured notes offering, along with borrowings under the revolver, were used to repay all existing revolver debt and retire senior secured notes.

Crosstex is a Dallas-based midstream natural gas company.

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