DALLAS--(BUSINESS WIRE)--Southcross Energy Partners, L.P. (NYSE:SXE) (“Southcross” or the “Partnership”) today announced that the board of directors of its general partner has declared a cash distribution for the second quarter of 2014 of $0.40 per common unit. The distribution will be paid on August 14, 2014 to all unitholders of record on August 8, 2014.
In addition, the board of directors of the general partner declared a $0.40 per unit distribution for the second quarter of 2014 on the Partnership’s Series A convertible preferred units. The holders of the Series A convertible preferred units have elected to convert their Series A convertible preferred units into common units of the Partnership in connection with the closing of the transactions contemplated by Southcross Energy LLC’s (“Southcross Energy”) previously disclosed business combination (the “Transaction”) with TexStar Midstream Services, LP. If the Transaction does not close by August 8, 2014 and the Series A convertible preferred units remain outstanding, the distribution of the Series A convertible preferred units will be paid in the form of additional Series A convertible preferred units. If the Transaction closes on or prior to August 8, 2014 and the Series A convertible preferred units convert into common units of the Partnership, the holders of such newly converted common units will receive a cash distribution of $0.40 per common unit.
This release serves as qualified notice to nominees under Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note that 100.0% of the Partnership’s distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of the Partnership’s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not the Partnership, are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words “expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “will be,” “will continue,” “will likely result,” and similar expressions, or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” Without limiting the generality of the foregoing, forward-looking statements in this news release specifically include the expectations, plans, strategies, objectives and growth of Southcross and its subsidiaries and Southcross Energy’s ability to close the Transaction. Although Southcross believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, Southcross can give no assurance they will prove to be correct. Forward-looking statements contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management’s control) that may cause Southcross’ actual results in future periods to differ materially from anticipated or projected results. An extensive list of specific material risks and uncertainties affecting Southcross is contained in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2014 and in other documents and reports filed from time to time with the SEC. Any forward-looking statements in this press release are made as of the date hereof and Southcross undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.
About Southcross Energy Partners, L.P.
Southcross Energy Partners, L.P. is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama and include three gas processing plants, two fractionation plants and approximately 2,800 miles of pipeline. The South Texas assets are located in or near the Eagle Ford shale region. Southcross is headquartered in Dallas, Texas. Visit www.southcrossenergy.com for more information.