Southcross Energy Partners L.P
Southcross Energy Partners L.P — Merger or Acquisition (February 2018)
10 slides from Southcross Energy Partners L.P's merger presentation, Feb 5, 2018
Slide 1: February 2018 Investor Presentation
February 2018 Investor Presentation
Slide 2: Cautionary Statements
Investor Presentation February 2018 Cautionary Statements 1 This presentation contains forward-looking statements and information. Forward-looking statements include, without limitation, financial projections and estimates and the underlying assumptions, any statement that may project, indicate or i
Slide 3: Benefits of AMID Combination
Investor Presentation February 2018 Benefits of AMID Combination Merger with AMID provides significant benefits to SXE unitholders ‒ Unitholders will have ownership in a combined entity with a strong balance sheet, capable of pursuing significantly larger growth opportunities, and participating in
Slide 4: Background and Context
Investor Presentation February 2018 Background and Context 3 Q3 2016 SXE Default Issues ‒ For the quarter ended September 30, 2016, SXE was not in compliance with the financial covenant in its revolving credit agreement requiring it to maintain a consolidated total leverage ratio of 5.0x to 1.0x
Slide 5: Covenant Window
Investor Presentation February 2018 Covenant Window The current Consolidated Total Leverage Ratio as of September 30, 2017 was 7.81x; by year-end 2018, the ratio is anticipated to be 7.0x Given limited ability to grow EBITDA, over $140 million of debt reduction would be required to achieve 5.0x
Slide 6: Going Concern Assessment
Investor Presentation February 2018 Going Concern Assessment Management’s assessment of SXE’s ability to continue as a Going Concern ‒ It is improbable that SXE could comply with its financial covenants as a stand-alone entity ‒ This would lead to an event of default under SXE’s revolving credit a
Slide 7: Strategic Options
Investor Presentation February 2018 Strategic Options Two paths forward were evaluated by the Boards to bridge the gap: seek a significant equity infusion or pursue a sale/merger that could create additional unitholder value over time ‒ Sponsors not in a position to provide additional equity suppo
Slide 8: Offer Highlights
Investor Presentation February 2018 Offer Highlights 7 SXE Offer Highlights Offer to publicly-owned common unitholders represents ~11% premium to January 26, 2018 closing SXE unit price; implied SXE value is currently ~$2.42/unit Common, Subordinated, and Class B Convertible units owned by Holdi
Slide 9: Appendix: GAAP to Non-GAAP Reconciliation
Investor Presentation February 2018 Appendix: GAAP to Non-GAAP Reconciliation 8 2016 2017(1) 2018E Net Loss (94.9)$ (89.8)$ (51.0)$ Add: Depreciation and amortization 106.9 91.7 72.8 Interest expense 35.2 37.2 29.7 Income tax (benefit) expense - - 0.6 Unit-based compensation 3.5 2.1 1.5 Equity in lo
Slide 10: Appendix: Additional Information and Where to Find It
Investor Presentation February 2018 Appendix 9 Additional Information and Where to Find It This communication relates to a proposed business combination between SXE and AMID. In connection with the proposed transaction, SXE and/or AMID expects to file a proxy statement/prospectus and other documents
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