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Crosstex Energy, Komandit Şirket Message Board

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  • lner2512 lner2512 Mar 10, 2010 9:32 PM Flag


    BTW, you are correct that the proceeds of those asset sales went to pay down debt, but the other side of those transactions flowed through the P&L.

    Without a secondary, they will very likely need to go to the revolver to fund the difference between the $25-30M they say they have approved and the $75-100M they actually need in purely growth cap-ex, just for 2010. If they go to the revolver, do you not think any distribution may be delayed a quarter or two?

    • Funding growth thru debt is common in MLP world. The only issue is this: is it wise and accretive to earnings above the cost of the debt? In this credit crisis we have gotten the idea that debt is bad. It's not if it's used in a judicious and wise way. So, the use of debt for growth could actually increase funds available for distributions. It's all in how you play the game.