Crosstex Energy Plans $700M Offering

Dallas-based midstream natural gas company Crosstex Energy expects to issue $700 million in senior unsecured notes due 2018, it said Tuesday.

The company said it plans to use the funds from the bond sale to repay existing long-term debt. Lead bookrunner Bank of America Merrill Lynch is expected to kick off a roadshow for investors today, which will end with the deal pricing Feb. 3.

Moody’s Investors Service assigned a B3 rating to the proposed notes, while Standard & Poor’s rated them B+.

Energy and oil and gas related companies have found success on the high yield bond market this month. Other such companies that have priced junk bonds recently include Newfield Exploration and Gibson Energy.