The guidance above sets forth management’s best estimate based on current and anticipated market conditions and other factors. While we believe that these estimates and assumptions are reasonable, they are inherently uncertain and are subject to, among other things, significant business, economic, regulatory, environmental and competitive risks and uncertainties that could cause actual results to differ materially from those that we anticipate, as set forth under “Forward-Looking Statements.”
Updated Capital and Liquidity Outlook
Effective March 27, 2013, Southcross and its lenders entered into an amendment to Southcross’ credit agreement pursuant to which Southcross obtained the ability to continue to borrow and to pay its first quarter 2013 distribution payment regardless of whether it is in compliance with certain March 31, 2013 financial covenants. In connection with this amendment, an investment affiliate of Charlesbank Capital Partners, LLC (“Charlesbank”), the majority owner of Southcross Energy LLC (“Holdings”), which owns approximately 58.5% of Southcross, including its general partner, has provided through Holdings a $10 million capital contribution that is being pledged to serve as cash collateral under the credit agreement. Charlesbank currently intends to support Southcross with an additional equity investment in the next 45 days for the purpose of allowing Southcross to obtain more lenient financial covenants under its revolving credit facility and providing capital for future growth.
Form 10-K FilingSouthcross intends to file a Form 12b-25 with the Securities and Exchange Commission relating to its Annual Report on Form 10-K. This filing provides an additional 15 calendar days, or until April 16, 2013, to file the Form 10-K, which would otherwise be due on April 1. As described in the Form 12b-25, Southcross is unable to file its Form 10-K within the prescribed time period without unreasonable effort or expense. The delay in filing this Form 10-K is not due to any change in or disagreement with Southcross’ independent registered public accounting firm. Southcross expects to file the Form 10-K within the time period afforded by the extension.
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