New Issue: Crosstex upsizes to $725 million, sells 8 7/8% eight-year notes at 97.907 to yield 9¼%

By Paul A. Harris

St. Louis, Feb. 3 - Crosstex Energy, LP and Crosstex Energy Finance Corp. priced a $725 million issue of 8 7/8% eight-year senior notes (B3/B+/) on Wednesday at 97.907 to yield 9¼%, or 588 basis points over Treasuries, according to a market source.

The yield printed tight to the 9 3/8% area price talk.

Bank of America Merrill Lynch, BNP Paribas Securities Corp., RBC Capital Markets Corp., Wells Fargo Securities, UBS Investment Bank and Goldman Sachs & Co. were joint bookrunners for the issue, which was upsized from $700 million.

Proceeds will be used to repay the company's outstanding senior secured notes.

Crosstex is a Dallas-based natural gas gathering, transmission, processing and marketing company.

Issuers:	Crosstex Energy, LP and Crosstex Energy Finance Corp.
Amount:	$725 million, increased from $700 million
Maturity:	Feb. 15, 2018
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, BNP Paribas Securities Corp., RBC Capital Markets Corp., Wells Fargo Securities, UBS Investment Bank, Goldman Sachs & Co.
Coupon:	8 7/8%
Price:	97.907
Yield:	9¼%
Spread:	588 bps
Call protection:	Four years
Trade date:	Feb. 3
Settlement date:	Feb. 8
Ratings:	Moody's: B3
	Standard & Poor's: B+
Distribution:	Rule 144A with registration rights
Price talk:	9 3/8% area

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