Southcross Energy Partners, L.P. announced that it has secured an amendment to its revolving credit agreement. The amendment provides for a full two-year suspension of leverage covenants in the credit agreement through 2018. The amendment also effects a reduction of the total revolver commitment from $200 million to $145 million, with further reductions to $115 million by December 31, 2018 and establishes certain additional covenant requirements.  The amendment also provides for a new $15 million funding commitment from Southcross’ parent company, which in turn is supported by contingent funding commitments from certain of the parent’s shareholders in the form of equity or unsecured debt to be made no later than December 31, 2017.

Associated with the amendment, a $17 million investment in Southcross by the parent of its general partner has been made and will be used to pay down revolver borrowings and for general partnership purposes.  Approximately 11.5 million Southcross common units were issued in exchange for the investment.

“We are very pleased to have accomplished this amendment with the support of our revolving credit lenders,” said Bret M. Allan, Senior Vice President and Chief Financial Officer. “We believe the leverage covenant relief, along with these new financial investments, provides Southcross with a two-year pathway to reestablish its financial health through successful execution of its business plan as our producing basins recover.”

According to the 8K filed, Wells Fargo Bank, N.A., UBS Securities LLC and Barclays Bank PLC and a syndicate of lenders (as amended, the “Third A&R Revolving Credit Agreement”).