Crosstex Energy (NYSE:ENLK) 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.
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