Southcross Energy Partners, L.P. (NYSE:SXE) Files An 8-K Entry into a Material Definitive Agreement
Item1.01 Entry into a Material Definitive Agreement
The information set forth in Item5.02 of this Current Report on
Form 8-K relative to the entry of an employment agreement is
incorporated into this Item1.01 by reference.
Item1.02 Termination of a Material Definitive
The information set forth in Item5.02 of this Current Report on
Form 8-K relative to the termination of an employment agreement
is incorporated into this Item1.02 by reference.
Item5.02 Departure of Directors or Certain Officers;
Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.
Effective January6, 2017 (the Effective Date), the Board of
Directors (the Board) of Southcross Energy Partners GP, LLC (the
General Partner), the general partner of Southcross Energy
Partners, L.P. (the Partnership), elected Bruce A. Williamson as
its Chairman, President and Chief Executive Officer.
Mr.Williamson succeeds John E. Bonn, who is stepping down as
President and Chief Executive Officer of the General Partner, and
David W. Biegler, the former Chairman of the General Partner. Mr.
Biegler will continue as a director of the General Partner.
Mr.Williamson, 57, has over 35 years of experience encompassing
all facets of the energy value chain. Most recently,
Mr.Williamson was the President and Chief Executive Officer and
director of Cleco Corporation, an energy services company, from
July 2011 to April 2016 and was the Chairman, President and Chief
Executive Officer at Dynegy,Inc., an energy services company,
from 2002 through 2011. Prior to his role at Dynegy,Inc.,
Mr.Williamson was the President and Chief Executive Officer at
Duke Energy Global Markets. Prior to Duke, Mr.Williamson was
Senior Vice President Finance at PanEnergy Corp. and also worked
for Shell Oil Company for 14years in explorationand production in
the United States and internationally.
Mr.Williamson joined the Board of the General Partner in April
2013 and served as an independent director designee of our
sponsors as a result of contractual arrangements. In July 2016,
Mr.Williamson became the Chairman of the Board of the general
partner of Southcross Holdings LP, the owner of the General
Partner and no longer was an independent director of the General
Partner. Mr.Williamson received his bachelors degree in finance
from the University of Montana, and his masters in business
administration from the University of Houston.
On the Effective Date, the General Partner entered into an
employment agreement with Mr.Williamson (the Williamson
Employment Agreement), which provides for an initial one year
term, unless earlier terminated, that automatically extends for
one year periods unless notice is given otherwise prior to the
expiration of the then-current term. Mr.Williamson will receive
an annualized base salary of $1,000,000 and will not be eligible
for a bonus. Mr.Williamson is entitled to receive certain
benefits and reimbursement of certain expenses. If Mr.Williamsons
employment is terminated without Cause or by resignation by
Mr.Williamson for Good Reason, Mr.Williamson will receive the
remainder of his Annual Base Salary for the then current Term, in
addition to other payments and benefits described in the
Williamson Employment Agreement (all of the capitalized terms in
this sentence have the meanings given them in the Williamson
By virtue of Mr.Bonns Employment Agreement, dated as of March5,
2015, by and between the General Partner and Mr.Bonn (the Bonn
Employment Agreement), Mr.Bonn will be entitled to receive (i)a
payment consisting of (a)any portion of Mr.Bonns Annual Base
Salary through the date of termination that is unpaid, (b)any
expenses owed to Mr.Bonn, (c)any accrued and unused paid time off
owed to Mr.Bonn, (d)any amount arising under any employee benefit
plans, and (e)payment of an Annual Bonus earned in 2016, but
unpaid; and (ii)a Severance Payment of (a)two times his current
Annual Base Salary, (b)two times his target Annual Bonus for
2017, (c)an amount equal to the cost of COBRA coverage for 18
months after termination and (d)$100,000 since Mr.Bonn was
terminated during the second year of the Bonn Employment
Agreement, subject to Mr.Bonn complying with certain restrictions
in a severance agreement once finalized and the terms of other
ancillary agreements to which Mr.Bonn is a party. All of the
capitalized terms in this paragraph, if not otherwise defined,
have the meanings given them in the Bonn Employment Agreement
The foregoing description of the Williamson Employment Agreement
is qualified in its entirety by reference to the full text of the
Williamson Employment Agreement, which is attached as Exhibit
10.1 to this Current Report and incorporated herein by reference.
A copy of the press release regarding the officer changes is
furnished as Exhibit99.1 to this Current Report on
Form8-K.Exhibit99.1 shall not be deemed filed for purposes of
Section18 of the Exchange Act of 1933, as amended (the Exchange
Act), or otherwise subject to the liabilities of that Section,
nor shall it be deemed to be incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the
Item9.01 Financial Statements and Exhibits.
Employment Agreement, dated January 6, 2017, between
Southcross Energy Partners GP, LLC and Bruce A. Williamson.
Press Release of Southcross Energy Partners, L.P. dated
January 9, 2017.
About Southcross Energy Partners, L.P. (NYSE:SXE)
Southcross Energy Partners, L.P. is a limited partnership. The Company provides natural gas gathering, processing, treating, compression and transportation services, and natural gas liquid (NGL) fractionation and transportation services. Its products include Ethane, Propane, Normal Butane, Isobutane and Natural Gasoline. The Company’s assets are located in South Texas, Mississippi and Alabama and include over four gas-processing plants, approximately two fractionation facilities and approximately 3,140 miles of pipeline. The Company’s assets in the South Texas region are located between Conroe and Webb and Dimmitt Counties near the Texas-Mexico border and include Woodsboro processing plant, Bonnie View NGL fractionation facility, and Gregory processing plant and NGL fractionation facility. The Company’s assets in the Mississippi region are located principally in the southern half of the state and consist of the intrastate pipeline system in Mississippi. Southcross Energy Partners, L.P. (NYSE:SXE) Recent Trading Information
Southcross Energy Partners, L.P. (NYSE:SXE) closed its last trading session up +0.29 at 2.00 with 1,242,248 shares trading hands.