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Subsequent Events
9 Months Ended
Sep. 30, 2012
Subsequent Events
20. Subsequent Events

On October 29, 2012, the board of directors of the General Partner declared a quarterly distribution of $0.68 per unit, payable on November 14, 2012 to unitholders of record on November 7, 2012.

On November 2, 2012, we acquired a 33.33% interest in DCP SC Texas GP, or the Eagle Ford system, from DCP Midstream, LLC and fixed price commodity derivatives for a three-year period for aggregate consideration of $438.3 million, less customary working capital and other purchase price adjustments of $7.1 million. $343.5 million of the consideration was financed with a 2-year Term Loan Agreement and $87.7 million was financed by the issuance at closing of an aggregate 1,912,663 of our common units to DCP Midstream, LLC. Upon approval by the board of directors of each of DCP Midstream, LLC and the General Partner to construct the Goliad gas plant, we expect to contribute an additional estimated $16.7 million plus 33.33% of the working capital and construction work in process for the Goliad gas plant, to the Eagle Ford system. The Eagle Ford system acquisition represents a transaction between entities under common control. The results of the Eagle Ford system will be included in our Natural Gas Services segment.

On November 2, 2012, we borrowed $343.5 million on a 2-year Term Loan Agreement (the “$343.5 million Term Loan”) to fund the cash portion of the acquisition of a 33.33% interest in the Eagle Ford system. The $343.5 million Term Loan will mature on November 2, 2014. The proceeds of any subsequent indebtedness issued with a maturity date after July 2, 2014 must first be used to prepay the existing $140 million Term Loan and any excess proceeds from indebtedness with a maturity after November 2, 2012 must be used to prepay the $343.5 million Term Loan. Indebtedness under the $343.5 million Term Loan bears interest at either: (1) LIBOR, plus an applicable margin of 1.375% based on our current credit rating; or (2) (a) the higher of SunTrust Bank’s prime rate, the Federal Funds rate plus 0.50% or the LIBOR Market Index rate plus 1%, plus (b) an applicable margin of 0.25% based on our current credit rating. The $343.5 million Term Loan Agreement requires us to maintain a leverage ratio (the ratio of our consolidated indebtedness to our consolidated EBITDA, in each case as is defined by the $343.5 million Term Loan Agreement) consistent with our Credit Agreement.