TRANSACTIONS WITH RELATED PARTIES

3 Months Ended

Mar. 31, 2014

Related Party Transactions [Abstract]

TRANSACTIONS WITH RELATED PARTIES

TRANSACTIONS WITH RELATED PARTIES

Charlesbank

The current board of directors of our General Partner includes three persons affiliated with Charlesbank and three outside directors. All of these directors are compensated equally for similar responsibilities and reimbursed for expenses incurred for their services to us. For the three months ended March 31, 2014 and 2013, we paid fees related to the Charlesbank director services of $0.1 million and $0.3 million, respectively, which are reflected in general and administrative expenses in our consolidated statements of operations.

Southcross Energy Partners GP, LLC (our General Partner)

Our General Partner does not receive a management fee or other compensation for its management of us.  However, our General Partner and its affiliates are entitled to reimbursements for all expenses incurred on our behalf, including, among other items, compensation expense for all employees required to manage and operate our business.  During the three months ended March 31, 2014 and 2013, we incurred expenses of $7.4 million and $5.9 million, respectively, related to these reimbursements, which are reflected in operating expenses in our consolidated statements of operations.

The reimbursement of our compensation expenses to our General Partner began on January 1, 2013 in accordance with our Partnership Agreement.

During the second quarter of 2013, we entered into a Purchase Agreement (as defined below) with Southcross Energy LLC, pursuant to which we issued and sold 1,715,000 Series A Preferred Units to Southcross Energy LLC for a cash purchase price of $22.86 per Series A Preferred Unit, in a privately negotiated transaction (See Note 9).  After the Series A Preferred Units issuance during the second quarter of 2013, Southcross Energy LLC sold 1,500,000 of the units to third parties. Southcross Energy LLC currently holds 225,766 Series A Preferred Units.  See Note 6 for discussion of the Collateral Account held by our General Partner.

Wells Fargo Bank, N.A.

During the three months ended March 31, 2014, we entered into amendments to our Credit Facility with syndicates of financial institutions and other lenders. These syndicates included affiliates of Wells Fargo Bank, N.A., an affiliate of which is a member of the investor group (See Note 6). Affiliates of Wells Fargo Bank, N.A. have from time to time engaged in commercial banking and financial advisory transactions with us in the normal course of business. Total fees paid, excluding interest, to affiliates of Wells Fargo, N.A. and its affiliates were $0.2 million during the three months ended March 31, 2014.