Crossroads Energy Partners, LLC Closes Debt and Equity Financings

HOUSTON, June 14, 2011 /PRNewswire/ -- Crossroads Energy Partners, LLC

Crossroads Energy, LP and its affiliated companies recently contributed substantially all of its assets and liabilities into a newly formed company called Crossroads Energy Partners, LLC ("Crossroads" or the "Company"). In conjunction with the asset contribution, Crossroads obtained financing from D.E. Shaw Direct Capital Portfolios, L.L.C. comprised of a $30 million senior secured first lien note facility, governed by an initial borrowing base of $15 million, and $5 million of equity (together, the "Financings").  Proceeds from the Financings were used by the Company to repay approximately $9 million of outstanding indebtedness under its previous credit facilities at closing and will provide liquidity for production and development opportunities.

"We are very excited about partnering with D.E. Shaw. This capital will enable us to maximize profitability in the exploitation of our Permian Basin properties and develop other growth opportunities," said Byron Yeatman, Managing Partner of Crossroads.

Rivington Capital Advisors LLC, and its affiliate, Rivington Securities LLC (FINRA member), acted as exclusive financial advisor to Crossroads.

About Crossroads Energy Partners, LLC

Crossroads Energy Partners, LLC is a newly formed independent oil and gas company based in Houston, Texas. Crossroads is focused on the acquisition and development of oil and gas properties primarily in the Permian Basin, South Texas and along the Texas Gulf Coast.

About the D.E. Shaw Group

The D.E. Shaw group is a global investment and technology development firm with more than 1,200 employees; approximately $19 billion in investment capital as of April 1, 2011; and offices in North America, Europe, the Middle East, and Asia.  The D.E. Shaw group's Direct Capital unit focuses on providing debt and equity capital to small and midsized businesses in all industry sectors, including energy companies.

About Rivington Capital Advisors, LLC

Rivington Capital Advisors, LLC is an investment banking boutique specializing in private capital and mergers and acquisition transactions for the small and mid-cap energy sectors.  Founded in 2002, Rivington has successfully closed approximately 60 transactions having a total transaction value exceeding $4.0 billion.

Cautionary Statement

Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly any express or implied statements concerning future financial condition or operating results.  Although Crossroads Energy Partners, LLC believes that the expectations reflected herein are reasonable, the matters discussed in this release involve risks, uncertainties, and other factors that may delay, prevent or adversely affect the transaction or its planned activities and operations.  There can be no assurance that such expectations will prove correct. All forward-looking statements are expressly qualified by this cautionary statement.

SOURCE Crossroads Energy Partners, LLC