Crosstex Energy Floats New Share Issue

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Crosstex Energy is looking to widen its capital base. The company has announced a flotation of its common units in an underwritten public offering, with 7.2 million units to be sold at 20.33 apiece. In addition, the company's underwriters have been granted a 30-day purchase option for up to an additional 1.08 million units.

Crosstex Energy said it plans to use the net proceeds of the issue for capital expenditures, including an expansion of the Cajun-Sibon natural gas liquids pipeline, and for "general partnership purposes."

Wells Fargo's Securities unit, Bank of America's Merrill Lynch, Citigroup, Morgan Stanley, and Royal Bank of Canada's RBC Capital Markets are the joint book-running managers of the offering, which is expected to close "on or about" June 14.


At the moment, Crosstex Energy has roughly 79.5 million shares outstanding. Its current stock price is $20.20.

The article Crosstex Energy Floats New Share Issue originally appeared on Fool.com.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo and owns shares of Bank of America, Citigroup, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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