Southcross Energy Partners, LP (SXE), which provides natural gas gathering, processing and transportation in the southern US, raised $180 million by offering 9.0 million units at $20, the midpoint of its $19-$21 range. The Dallas, TX-based company, which was formed by Boston, MA-based private equity firm Charlesbank, plans to pay an initial annualized distribution of $1.60 per unit, representing an 8.0% yield at its $20 offer price.
Southcross Energy Partners will begin trading on the NYSE on Friday under the symbol SXE. Citi, Wells Fargo Securities, Barclays and J.P. Morgan acted as bookrunners on the deal.
Southcross is one of two MLPs to price its IPO on Thursday for trading on Friday. Delek Logistics Partners, LP (DKL), a partnership formed by publicly-traded Delek Holdings (NYSE: DK) to own crude oil and refined products logistics assets, raised $168 million by pricing 8 million units at $21, the high end of its $19-$21 range. BofA Merrill Lynch, Barclays, Goldman Sachs and Wells Fargo were the bookrunners on the Delek Logistics IPO.
