Last week Mergermarket came out with its global mergers and acquisitions report for 2019 and its figures didn’t really differ much from other data providers.
The firm said global M&A reached $3.3 trillion last year, down 6.9% over 2018. While the value of global M&A in the second half of the year slipped 24.2% over the first half, the average value of M&A deals for the year overall was $389 million, the highest since 2015.
Other interesting data emerged from the report. Take-private buyouts reached $158.3 billion last year, the highest value since 2007, and the U.S. made up 47.2% of global transactions, up from 43.3% last year and its highest figure since 2001.
Occidental Petroleum’s $54.4 billion acquisition of Anadarko – both Houston-area companies – ranked as the fifth largest deal globally last year and the third in the U.S.
Much like other M&A data providers, Wachtell, Lipton, Rosen & Katz led the U.S. league tables by value and Kirkland & Ellis did so by deal count.
On private equity deals, however, Kirkland took the top spot in terms of value and deal count, followed by Latham & Watkins on both metrics. Simpson Thacher & Bartlett was number-three in terms of value and DLA Piper was third by deal count.
Kirkland led deals in the southern U.S. (including Texas) in terms of deal count, as it did in 2018, followed by DLA Piper, Latham, Jones Day, McGuireWoods, Goodwin Procter and Ropes & Gray. Vinson & Elkins was ranked eighth in the region, down from sixth last year.
In Texas last week, it was back to business after the holidays, with 21 deals valued at $14.2 billion for the week, up from 18 transactions worth $7.28 billion at the same time last year.
Weekly Corporate Deal Tracker Roundup Stats
A compilation of weekly stats from The Lawbook's CDT Weekly Roundup
(Deal Values in Millions)
(Deal Values in Millions)
|Week Ending||Deal Count||Amount||Firms||Lawyers||M&A Count||M&A Value $M||CapM Count||CapM Value $M|
|June 25, 2022||15||$6,142||13||146||9||$2,017||6||$4,125|
|June 18, 2022||17||$11,890.1||14||228||15||$11,410||2||479.7|
|June 11, 2022||17||$7,600||12||123||10||$2,300||7||$5,300|
|June 4, 2022||12||$2,937||10||127||9||$692||3||$2,245|
|May 28, 2022||9||$3,197.6||11||86||9||$3,197.6||0||0|
|May 21, 2022||14||$7,284.5||12||185||11||$6,609||3||$675.5|
|May 14, 2022||11||$306.6||9||80||10||$306.6||1||$225|
|May 7, 2022||16||$10,451.75||12||108||12||$1,827||4||$8,624.75|
|April 30, 2022||16||$2,296.5||16||157||12||$895.5||4||$1,401|
|April 23, 2022||10||$2,241||11||58||8||$1641||2||$600|
|April 16, 2022||11||$6,643||7||156||8||$2,359||3||$4,284|
|April 9, 2022||17||$4,429||14||184||11||$1,690||6||$2,739|
|April 2, 2022||13||$1,755||8||84||10||$1,145||3||$610|
|March 26, 2022||11||$3,205||8||65||6||$200||5||$3,005|
|March 19, 2022||13||$2,239.17||9||106||13||$2,239.17||0||0|
|March 12, 2022||18||$12,016||11||239||15||$11,965||2||$51.35|
|March 5, 2022||17||$6,786||13||137||13||$5,161||4||$1,625|
|February 26, 2022||12||$5,095||8||149||9||$4,437.5||3||$658|
|February 19, 2022||17||$22,229||17||174||14||$21,354||3||$875|
|February 12, 2022||12||$2,344.7||10||73||8||$641.7||4||$1,703|
|February 5, 2022||11||$2,503||8||99||11||$2,503||0||0|
|January 29, 2022||11||$3,872||12||101||12||$3,872||0||0|
|January 22, 2022||13||$5,143.5||10||99||12||$4,842.5||1||$301|
|January 15, 2022||12||$7,605||9||155||9||$6,480||3||$1,025|
|January 8, 2022||13||$8,256.2||11||102||13||$8,256.2||0||0|
|January 1, 2022||9||$1,273.8||6||50||9||$1,273.8||0||0|
|December 25, 2021||21||$4,734.75||11||176||16||$3,410||5||$1,324.75|
|December 18, 2021||26||$7,325.2||15||193||18||$3,640.2||8||$3,685.2|
|December 11, 2021||16||$5,017||10||109||13||$1,417||3||$3,600|
|December 4, 2021||14||$2,310||8||86||8||$2,310||6||$1,882.05|
|November 27, 2021||9||$3.460.1||10||101||6||$1,758||3||$1,702.6|
|November 20, 2021||20||$22,792||15||157||12||$18,864.5||8||$3,928|
|November 13, 2021||21||$26,729||12||178||13||$11,822||8||$14,907|
|November 6, 2021||12||$8,303||13||157||10||$6,682||3||$1,621|
|October 30, 2021||21||$10,368||15||218||15||$9,24.4||6||$1,103.|
|October 23, 2021||21||$18.783.1||15||222||11||$12,314||10||$6,468.6|
|October 16, 2021||15||$3,868||11||118||15||$2,293||2||$1,575|
|October 9, 2021||20||$8,610||16||175||16||$7,795||4||$815|
|October 2, 2021||14||$6,250||11||137||10||$5,200||4||$1,050|
|September 25, 2021||11||$11,460||9||93||7||$10,200||4||$1,250|
|September 18, 2021||11||$16,603||8||99||8||$15,084||3||$1,519|
|September 11, 2021||17||$10,653||11||103||13||$8,503||4||$2,150|
|September 4, 2021||13||$7,222||10||89||11||$6,715||2||$507|
|August 28, 2021||12||$763||9||63||11||$663||1||$100|
|August 21, 2021||12||$29,659||7||79||11||$29,579||1||$80|
|August 14, 2021||22||$17,845||11||199||12||$12,805||10||$5,04|
|August 7, 2021||17||$13,670||12||139||15||$11,766||2||$1,904|
|July 31, 2021||21||$8,160||11||134||10||$3,574||10||$4,586|
|July 17, 2021||14||$4,009||11||124||12||$2,015||2||$1,994|
|July 10, 2021||16||$3,997||13||143||11||$1,597||4||$2,4|
|July 3, 2021||24||$7,492||13||94||16||$3,769||8||$3,722|
|June 26, 2021||10||$4,995||7||85||8||$3,847||2||$1,148|
|June 19, 2021||28||$16,830||8||228||9||$1,861||19||$14,968|
|June 12, 2021||26||$27,238||15||209||19||$25,602||7||$1,636|
|June 5, 2021||15||$15,539||13||100||13||$14,709||2||$600|
|May 29, 2021||35||$20,279||11||145||28||$18,64||7||$1,639|
|May 22, 2021||24||$53,208||14||174||17||$51,047||7||$2,161|
|May 15, 2021||18||$10,620||13||220||11||$5,870||7||$4,809|
|May 8, 2021||17||$10,400||11||156||15||$8,386||2||$2,500|
|May 1, 2021||21||$7,200||16||115||12||$3,808||9||$3,392|
|April 24, 2021||8||$20,200||9||31||8||$20,200||0||0|
|April 17, 2021||14||$6,270||8||102||11||$4,0180||3||$2,260|
|April 10, 2021||15||$8,940||13||129||14||$7,990||1||$950|
|April 3, 2021||18||$19,513||10||151||12||$16,923||6||$2,590|
|March 27, 2021||27||$13,942||15||244||14||$4,300||13||$9,633.5|
|March 20, 2021||11||$2,046||4||102||3||$270||8||$1,776|
|March 13, 2021||15||$3,270||9||109||6||$538||9||$2,732|
|March 6, 2021||24||$13,617||10||196||13||$10,395||11||$3,222|
|February 27, 2021||19||$8,105||12||139||15||$4,970||4||$3,135|
|February 20, 2021||9||$8,820||9||153||8||$8,520||1||$300|
|February 13, 2021||12||$4,852.6||7||81||7||2,766||5||$2,086.6|
|February 6, 2021||18||$9,752||13||153||14||$5,222||4||$4,530|
|January 30, 2021||18||$9,449||9||182||15||$8753.8||3||$695.3|
|January 23, 2021||14||$8,150||8||118||6||$4,000||8||$4,150|
|January 16, 2021||17||$6,783||13||138||11||$2,400||6||$4,382.9|
|January 9, 2021||22||$6,829||14||135||18||$3,139.3||4||$3,690|
|January 2, 2021||7||$1,466||7||60||7||$1,466||0||0|
|December 26, 2020||18||$15,900||12||163||16||$5,300||1||$600|
|December 19, 2020||18||$9,769||14||110||14||$8,426||4||$1,343|
|December 12, 2020||10||$7,200||9||100||9||$3,325||1||$3,830|
|December 5, 2020||15||$4,261||9||122||9||$2,780||6||$1,481|
|November 28, 2020||19||$7,758||10||110||13||$4,003||6||$3,755|
|November 14, 2020||14||$864.1||14||157||12||$289.1||2||$575|
|November 7, 2020||13||$6,332||9||129||9||$2,483.5||4||$3,849|
|October 31, 2020||10||$3,995.8||8||103||6||$3,231.1||4||$754.7|
|October 24, 2020||6||$18,100||6||58||5||$17,709||1||$350|
|October 17, 2020||8||$351.9||5||55||8||$351.9||0||0|
|October 10, 2020||7||$5,229||3||50||4||$735||3||$4,494|
|October 3, 2020||14||$21,428||9||173||9||$17,535||5||$3,893|
|September 26, 2020||10||$12,770||8||93||5||$10,300||5||$2,470|
|September 19, 2020||14||$8,365||9||101||6||$1,020||8||$7,345|
|September 12, 2020||6||$4,406||8||59||3||$1,270||3||$3,136|
|September 5, 2020||11||$5,191||8||117||9||$4,061||2||$1,130|
|August 29, 2020||11||$2,531||9||94||5||$1,130||6||$1,401|
|August 22, 2020||18||$6,574||12||140||7||$1,930||11||$4,644|
|August 15, 2020||13||$4,991||10||97||7||$1,216||6||$3,775|
|August 8, 2020||12||$32,092||11||112||9||$30,457||3||$1,635|
|August 1, 2020||7||$5,287||8||76||5||$3,687||2||$1,600|
|July 25, 2020||9||$18,751||6||67||7||$18,403||2||$348|
|July 18, 2020||6||$1,982.5||5||50||4||$1,407.5||2||$575|
|July 11, 2020||11||$565.1||12||75||10||$65.1||1||$500|
|July 4, 2020||10||$8,889||8||98||9||$8,788||1||$100.3|
|June 27, 2020||8||$6,874||10||50||5||$4,972.5||3||$2,081.5|
|June 20, 2020||12||$4,444||9||115||7||$2,829||5||$1,615|
|June 13, 2020||6||$3,582||4||37||2||$350||4||$3,232|
|June 6, 2020||11||$3,213.7||8||65||7||$470||4||$2,743.7|
|May 30, 2020||8||$7,335||7||48||6||$4,639||2||$2,697|
|May 23, 2020||4||$432.4||4||34||3||$432.4||1||0|
|May 16, 2020||6||$310||6||34||5||$310||1||0|
|May 9, 2020||18||$5,630||16||124||14||$3,180||4||$2,450|
|May 2, 2020||15||10,400||10||90||8||$1,900||7||$,8,500|
|April 25, 2020||8||$3,400||9||36||5||$1,000||3||$2,450|
|April 18, 2020||19||$9,500||14||92||8||$185.7||11||$9,360|
|April 11, 2020||12||$6,000||9||40||5||$190||7||$5,800|
|April 4, 2020||14||$8,200||11||68||10||$2,200||4||$6,000|
|March 28, 2020||16||$6,500||13||96||10||$3,700||6||$2,800|
|March 21, 2020||11||$11,910||7||33||7||$2,250||4||$9,960|
|March 14, 2020||7||809.8||6||34||6||684.8||1||125|
|March 7, 2020||16||$2,500||15||70||13||$669||3||$1,400|
|February 29, 2020||13||$15,260||13||128||11||$11,760||2||$3,500|
|February 22, 2020||12||$3,700||10||92||10||$2,560||2||$1,130|
|February 15, 2020||16||$1,250||10||84||12||$35||4||$1,222|
|February 8, 2020||18||$6,080||14||123||14||$2,595||4||$3,485|
|February 1, 2020||21||$20,900||12||101||14||$17,860||7||$3,060|
|January 25, 2020||13||$7,430||13||62||12||$6,430||1||$1,000|
|January 18, 2020||23||$9,580||15||120||19||$6,580||4||$3,000|
|January 11, 2020||21||$14,200||18||199||16||$1,020||5||$13,200|
|January 4, 2020||22||$6,400||11||119||16||$3,204||6||$3,245|
|December 28, 2019||22||$7,150||19||175||18||$6,800||4||$327.4|
|December 14, 2019||24||$36,300||23||167||19||$9,500||5||$26,800|
|December 7, 2019||11||$10,400||11||55||7||$1,082||4||$9,370|
|November 30. 2019||14||$2,450||12||126||12||$1,760||2||$692.5|
|November 23, 2019||16||$1,995||10||41||11||$615||5||$1,380|
|November 16, 2019||15||$3,820||13||135||11||$2,500||4||$1,271|
|November 9, 2019||25||$12,900||17||182||23||$12,200||2||$575|
|November 2, 2019||10||$2,470||12||61||9||2,450||3||$22|
|October 26, 2019||12||$5,560||14||70||11||$3,860||1||$1,700|
|October 19, 2019||8||$6,600||8||138||8||$6,600||0||0|
|October 12, 2019||19||$4,300||14||55||16||$3,800||3||$500|
|October 5, 2019||18||$14,500||19||166||15||$11,100||3||$3,400|
|September 28, 2019||19||$8,100||18||132||18||$7,560||1||$550|
|September 21, 2019||14||$6,300||16||66||11||$2,160||3||$4,170|
|September 14, 2019||15||$23,800||12||56||11||$21,250||4||$2,570|
|September 7, 2019||17||$3,500||15||98||14||$1,900||3||$1,600|
|August 31, 2019||5||$8,700||6||50||5||$8,700||0||0|
|August 24, 2019||16||$10,000||14||82||15||$4,250||1||$5,750|
|August 16, 2019||10||$1,680||5||52||7||$650||3||$950|
|August 9, 2019||17||$17,700||15||68||14||$3,900||3||$13,800|
|August 2, 2019||13||$5,760||12||108||13||$5,760||NA||NA|
|July 27, 2019||11||$7,300||13||76||8||$6,570||3||$730|
|July 20, 2019||13||$11,800||13||125||11||$5,300||2||$6,500|
|July 13, 2019||10||$775||7||46||8||$542.5||2||$233|
|July 6, 2019||7||$2,500||9||85||7||$2,500||0||0|
|June 29, 2019||23||$8,290||15||154||17||$2,300||6||$5,970|
|June 22, 2019||17||$10,700||10||139||14||$7,700||3||$3,000|
|June 15, 2019||11||$13,500||14||160||11||$13,500||NA||NA|
|June 8, 2019||13||$2,870||17||55||11||$1,570||2||$1,300|
|June 1, 2019||10||$4,460||11||60||8||$4,140||2||$315|
|May 25, 2019||17||$4,360||14||79||14||$3,700||3||$612|
|May 18, 2019||22||$9,000||17||150||16||$3,400||6||$5,600|
|May 11, 2019||18||$19,800||17||177||15||$18,300||3||$1,500|
|May 4, 2019||10||$7,075||6||32||8||$6,900||2||$175|
|April 27, 2019||15||$3,200||14||117||14||$3,160||1||$40|
|April 20, 2019||13||$13,500||10||90||9||$12,200||4||$1,300|
|April 13, 2019||16||$38,900||14||91||14||$37,800||2||$1,100|
|April 6, 2019||12||$6,870||11||94||10||$6,730||2||$50|
|March 30, 2019||15||$6,470||12||84||10||$7,91.5||5||$5,677|
|March 23, 2019||18||$6,450||14||91||14||$5,042||4||$1,408|
|March 16, 2019||14||$10,180||12||115||11||$8,800||3||$1,300|
|March 9, 2019||9||$1,800||6||49||8||$1,300||1||$500|
|March 2, 2019||20||$3,033||16||107||14||$1,817||6||$1,262|
|February 23, 2019||12||$2,040||8||69||9||$614.6||3||$1,430|
|February 16, 2019||16||$9,970||18||77||16||$9,970||0||0|
|February 9, 2019||14||$6,400||10||110||14||$6,400||0||0|
|February 2, 2019||18||$6,740||15||99||16||$5,720||2||$950|
|January 26, 2019||13||$2,770||11||67||11||$918.95||2||$1,850|
|January 19, 2019||15||$3,819||16||76||12||$2,594||3||$1,225|
|January 12, 2019||18||$7,283||14||92||15||$1,683||3||$5,600|
|January 5, 2019||10||$529||12||50||10||$529||0||0|
|December 22, 2018||17||$2,570||13||87||14||$941||3||$1,629|
|December 15, 2018||10||$2,860||8||26||8||$264||2||$2,600|
|December 8, 2018||15||$1,819||16||65||12||$552||3||$1,267|
|December 1, 2018||12||$7,500||10||90||9||$1,200||3||$6,200|
|November 28, 2018||15||$4,500||11||107||14||$4,000||1||$500|
|November 19, 2018||18||$6,137||13||98||13||$2,142||5||$3,995|
|November 14, 2018||18||$9,200||13||152||15||$8,500||3||$694|
|November 6, 2018||16||$17,300||16||183||14||$16,361||2||$950|
|October 29, 2018||14||$14,400||18||127||17||$13,800||1||$600|
|October 24, 2018||13||$6,140||13||126||11||$5,122||2||$1,018|
|October 17, 2018||18||$18,390||15||125||14||$12,292||4||$6,098|
|October 10, 2018||29||$3,149||18||104||20||$1,647||9||$819|
|October 2, 2018||18||$9,300||11||67||14||$7,300||4||$2,000|
|September 25, 2018||13||$7,000||11||75||10||$6,000||3||$995|
|September 18, 2018||9||$3,570||7||44||9||$3,570||0||0|
|September 11, 2018||13||$5,900||10||132||13||$5,900||0||0|
|September 7, 2018||14||$5,000||15||86||11||$4,000||3||$1,000|
|August 29, 2018||15||$20,700||14||79||13||$4,700||2||$16,000|
|August 20, 2018||10||$12,400||11||53||8||$11,380||3||$1,057|
|August 14, 2018||12||$19,900||12||132||9||$18,889||3||$1,011|
|August 7, 2018||16||$68,600||11||106||13||$67,259||3||$1,340|
|July 31, 2018||15||$15,100||15||95||11||$13,060||4||$2,060|
|July 23, 2018||13||$2,130||15||60||10||$1,804||3||$1,100|
|July 17, 2018||14||$5,370||17||98||9||$4,310||5||$1,100|
|July 9, 2018||16||$11,200||15||74||10||$11,080||6||$862|
|July 3, 2018||13||$7,000||7||81||12||$6,330||1||$750|
|June 25, 2018||15||$8,800||13||97||9||$4,970||6||$3,930|
|June 18, 2018||13||$14,200||14||80||7||$221||6||$14,290|
|June 11, 2018||12||$6,300||8||96||8||$5,910||4||$803|
|June 6, 2018||13||$14,500||10||88||8||$14,154||5||$579|
|May 31, 2018||11||$4,890||10||63||8||$3,240||3||$1,790|
|May 22, 2018||15||$20,400||11||63||9||$19,808||6||$885|
|May 15, 2018||15||$4,700||15||106||10||$3,900||5||$643|
|May 9, 2018||11||$1,400||13||88||9||$1,300||2||$560|
|May 1, 2018||8||$14,250||7||88||7||$13,400||1||$450|
|April 24, 2018||12||$5,300||6||61||11||$4,470||1||$800|
|April 17, 2018||9||$1,800||10||44||7||$2,330||2||$1,434|
|April 11, 2018||11||$2,500||8||32||6||$1,690||5||$809|
|April 3, 2018||15||$13,400||11||121||9||$12,020||6||$1,090|
|March 28, 2018||10||$4,000||10||92||7||$3,870||3||$215|
|March 19, 2018||17||$5,800||13||51||10||$590||7||$5,165|
|March 12, 2018||15||$3,130||11||43||11||$2,360||4||$788|
|March 6, 2018||19||$5,400||13||116||10||$1,530||9||$4,860|
|February 27, 2018||20||$6,600||13||69||14||$5,530||6||$1,030|
|February 19, 2018||15||$5,500||14||111||10||$3,990||6||$1,980|
|February 12, 2018||23||$10,900||17||157||12||$7,110||11||$3,840|
|February 5, 2018||16||$8,600||13||100||7||$1,330||9||$7,800|
|January 30, 2018||11||$12,600||11||68||5||$7,300||6||$4,982|
|January 24, 2018||19||$9,400||15||129||5||$2,010||14||$7,337|
|January 18, 2018||10||$6,280||8||49||2||$2,100||8||$4,188|
|January 9, 2018||12||$16,500||12||92||9||$15,890||3||$475|
|January 3, 2018||10||$2,500||9||47||8||$2,350||2||$150|
|December 27, 2017||15||$9,000||15||113||9||$7,568||6||$1,784|
|December 18, 2017||15||$13,800||16||164||9||$13,010||7||$1,118|
|December 11, 2017||14||$9,700||10||126||12||$2,940||4||$8,500|
|December 4, 2017||6||$1,800||6||31||5||$1,510||1||$300|
|November 28, 2017||7||$3,850||8||76||4||$3,260||3||$285|
|November 16, 2017||10||$2,700||10||48||6||$1,840||4||$856|
|November 8, 2017||15||$2,380||17||91||10||$1,860||5||$516|
|November 1, 2017||12||$4,700||17||94||9||$3,400||4||$1,300|
|October 23, 2017||15||$10,500||10||67||10||$9,780||4||$1,530|
|October 18, 2017||6||$2,000||37||3||$225||3||$1,820|
|October 10, 2017||12||$6,570||100||9||$3,880||3||$3,360|
|October 2, 2017||8||$3,100||11||19||3||$1,630||5||$1,750|
|September 25, 2017||8||$4,880||8||79||5||$2,660||5||$2,070|
|September 18, 2017||9||$4,770||3||$300||6||$4,470|
|September 12, 2017||11||$4,430||8||$2,030||3||$2,400|
|September 1, 2017||4||$1,310||3||$317||1||$1,000|
|August 23, 2017||11||$13,640||9||8||$11,840||3||$1,800|
Eighteen firms and 199 Texas lawyers were involved in the dealmaking, which consisted of 16 M&A/private equity/venture capital transactions valued at $1.02 billion and 9 capital markets/financing deals worth $13.2 billion. Latham boasted most of the capm deals for five different clients.
M&A/PRIVATE EQUITY/VENTURE CAPITAL
Locke Lord, Gibson Dunn aid on Edgewater’s $400M EnCap Flatrock commitment
Houston-based startup Edgewater Midstream said it’s attracted a $400 million capital commitment from San Antonio private equity firm EnCap Flatrock Midstream.
Locke Lord represented Edgewater with a team led by partner Mitch Tiras that included partner Jeff McPhaul, senior counsel DeLaina Mulcahy and Mechelle Smith and associates Matt McKenna, Andrew Nelson and Andrew Reed, all of Houston.
Gibson, Dunn & Crutcher counseled EnCap, including Houston partner Hillary Holmes and Denver partner Beau Stark and associates Juan Pablo “JP” Lopez and William Bald. Houston partner James Chenoweth and Houston associate Collin Metcalf counseled on tax aspects.
Edgewater is focused on acquiring, developing and operating crude oil pipeline and terminal solutions between and near major North American petroleum trading hubs and demand centers. It aims to provide logistics solutions to refiners, producers and marketers of crude oil, refined products and other bulk liquids.
The company is led by three industry veterans: CEO Stephen Smith, CCO Brian Thomason and COO Mike Truby, who together have more than 70 years of experience at energy companies including Genesis, Motiva, ConocoPhillips and NuStar.
Willkie, Baker Botts, Kelly Hart aid on Kimbell’s $175M purchase from NGP-backed Springbok
Willkie Farr & Gallagher said Jan. 9 it represented Dallas-based Springbok Energy Partners and Springbok Energy Partners II on their sale of mineral and royalty interests in the Delaware Basin and elsewhere to Kimbell Royalty Partners for $175 million.
The Willkie deal team was led by Houston-based partner Michael De Voe Piazza and included associate Will Thanheiser.
Baker Botts said Jan. 10 it represented Fort Worth-based Kimbell on both the acquisition and an equity offering related to the deal.
The team included partner Jason Rocha, senior associate Eileen Boyce and associates Jennifer Gasser, Steven Lackey and Nathaniel Richards, all of Houston. Houston partner Mike Bresson and special counsel Chuck Campbell weighed in on tax matters.
Kelly Hart & Hallman partner Drew Neal also counseled Kimbell.
The purchase price includes $95 million in cash and 2.2 million common units of Kimbell and 2.5 million common units of Kimbell Royalty Operating, which together are valued at around $80 million.
Kimbell intends to raise the cash portion of the purchase price through a combination of an underwritten public offering of common units and borrowings under its revolving credit facility.
The parties expect to close the offering on Jan. 14 and the transaction sometime in the second quarter.
Kimbell expects the deal to immediately boost distributable cash flow per unit, increase daily production by 19% and generate cash general and administrative savings of 18% per barrel of oil equivalent.
The deal brings Kimbell’s portfolio to 13 million gross acres, 145,917 net royalty acres and 93 active rigs, around 12% of the total active land rigs drilling in the continental U.S.
Kimbell chairman and CEO Bob Ravnaas said the acquisition highlights the company’s competitive advantage in buying large, diversified mineral and royalty portfolios. It’s also its first meaningful addition from the Delaware Basin since its initial public offering in an area where the company is finally seeing opportunities with the right balance of existing and future drilling locations.
“We are optimistic about the future development of these assets for many years to come,” Ravnaas said. “[We] believe this represents a strong start to consolidation in the minerals space in 2020.”
The assets also include positions in the DJ Basin, Haynesville, Stack and Eagle Ford Shale.
Led by CEO and president Ryan Watts, Springbok is backed in part by NGP Energy Capital Management. Over the past 10 years, Springbok and its affiliated predecessors have invested $200 million of investors’ capital by acquiring 13,000 mineral interests across 15 unconventional resource plays in 10 states.
Haynes and Boone represents Blucora on $160M HK acquisition
Haynes and Boone said Jan. 7 it represented Irving, Texas-based Blucora Inc. on its acquisition of HK Financial Services, a CPA-focused, captive registered investment advisor, for $160 million.
Dallas partner Jan Sharry co-led the team with a partner in Denver (Dan Malone) They were assisted by partners Ryan Cox, Madelyn Calabrese and Daren Domina and associates Michael Pritchard, David Lightstone and Omar Shariff.
Haynes and Boone said its M&A practice group has helped clients close more than 500 transactions in the last five years with an aggregate value exceeding $40 billion.
The combination adds $4.4 billion to Blucora’s client assets, bringing the total to more than $72 billion, with 42% in advisory assets.
“This transaction further reinforces Blucora’s strategy of delivering tax-advantaged wealth management solutions to advisors and end-clients while maintaining healthy margins and profitable growth,” John Clendening, CEO and president of Blucora, said in a statement.
Blucora has two segments: Its Avantax Wealth Management business (formerly HD Vest and 1st Global), the number-one tax-focused broker-dealer with $67 billion in client assets as of Sept. 30; and its TaxAct business, the number-three tax preparation software by market share with 3 million consumer and professional users.
Sidley represents HMS on Accent acquisition from Intrado for $155M
Sidley Austin said it represented Irving-based HMS Holdings Corp. on its acquisition of Accent from Intrado Corp. (also known as West Corp.) for $155 million. The deal closed Dec. 23.
Dallas M&A and private equity partner S. Scott Parel led the deal team, which included Dallas attorneys Yvette Ostolaza, a partner in the securities and shareholder litigation practice, and Margaret Allen, a partner in commercial litigation and disputes.
Also in the group were Kelly Dybala, a Dallas partner in global finance; Heather Palmer, a Houston partner in the environmental section; and Robert Velevis, a Dallas partner in commercial litigation and disputes.
Accent is a payment accuracy and cost containment business. HMS funded the purchase with cash on hand.
“The combination of Accent with HMS will provide expanded payment accuracy capabilities across the healthcare payer landscape and offers numerous benefits for our clients and stakeholders,” HMS chairman and CEO Bill Lucia.
HMS helps healthcare organizations reduce costs and improve health outcomes through technology, analytics and engagement solutions.
Munsch, GDHM work on Mohr’s $100M purchase of Austin industrial/office park
Dallas family office Mohr Capital has acquired MetCenter, a 404,800-square-foot office and industrial portfolio In Austin from Zydeco Development for $100 million.
Ian Fairchild, a partner at Munsch Hardt Kopf & Harr in Dallas, represented Mohr, which uses him for most of its legal work, Mohr’s director of acquisitions Kyle Campbell told The Texas Lawbook.
Fairchild also advised the firm on the sale of its University Highland office building in Charlotte in December and its 460,000-square-foot single tenant office building in Cleveland in November for $61.1 million.
Alan Haywood of Graves Dougherty Hearon & Moody in Austin counseled the seller, which also used JLL Capital Markets.
The five-building portfolio in Austin includes a 160,000-square-foot industrial building leased to Amazon.com Inc. and Uber Advanced Technologies and a 244,800-square-foot office facility in four buildings occupied by technology, government and healthcare tenants.
“The southeast Austin submarket is one of the most dynamic and fastest growing markets in the country,” said Boyd Messmann, acquisitions consultant for Mohr. “The portfolio is unique given the above-market parking ratios, easy access to highways and its proximity to Austin-Bergstrom International Airport.”
According to a recent report, Austin is ranked first among 80 major U.S. cities for overall real estate prospects in 2020. Austin also took the top spot for industrial real estate prospects next year.
Mohr founder and chairman Bob Mohr said with the city’s substantial growth through corporate relocation and population inflow and a favorable tax environment, he believes Austin will continue to rise and further solidify itself as a hub for business and innovation. “We plan to actively source other opportunities in the area,” he said.
Reed Smith advises Pieces Technologies on $25.7M funding from Concord Health
Pieces Technologies, a Dallas healthcare artificial intelligence and technology provider, said last week it raised $25.7 million in Series B funding from Concord Health, Children’s Health of Dallas and OSF Healthcare System in Illinois.
The company said it worked with Reed Smith in Dallas, including partner Bobby Majumder and associate Katherine Geddes. Jones Day represented Concord out of Chicago (Michael Earley).
Pieces said the investment will accelerate its national distribution of its clinical analytics engine, Pieces Decision Sciences, and its platform for social determinants of health, Pieces Iris.
The company is led by founder and managing partner James Olsen and founder and CEO Ruben Amarasingham. It claims its software has cut hospital lengths-of-stays by half a day and sustained reduction in readmissions at several notable health systems and communities across North America.
Its clients include Children’s Health of Dallas and OSF Healthcare System as well as UVA Health System, Northwell Health, Baylor Scott and White Health and Parkview Medical Center, among others.
Kastner Gravelle counsels Cottonwood on $5.5M investment in Hitched
Hitched, a Houston-based marketplace for industrial equipment rentals, said Jan. 7 it raised $5.5 million in Series A funding led by Cottonwood Venture Partners.
Mark Mallery and Matt Esber from Kastner Gravelle in Austin advised Cottonwood on the deal.
The company plans to use the funds to accelerate its product development and enhance the customer experience.
Founded in 2018 and led by CEO Adam Gilles, Hitched provides rental and service companies with the capability of hosting, chartering and managing equipment in a centralized platform.
Its benefits for end-users include on-demand rentals of forklifts, generators and cranes; examination and evaluation of product capabilities; and revenue summaries of assets including crew members, products and equipment.
The marketplace is used by companies in the oil and gas, construction and industrial industries.
Latham & Watkins advises Oxy on strategic, financial Initiatives for Western Midstream
Latham & Watkins said Jan. 6 it advised Occidental Petroleum Corp., known as Oxy, on several agreements that allow unit Western Midstream Partners to function independently.
Others were partner Michael King, who advised on oil and gas transactional matters along with Houston associates Corey Allen, Michael Sellner and Jordan Mack; partner Tim Fenn, who worked on tax issues with associate Michael Rowe; and partner Catherine Ozdogan, who assisted on finance with associates Lindsey Chapman and Chris Wood.
Oxy announced Jan. 6 that it had executed strategic and financial initiatives designed to maximize shareholder value after closing its acquisition of Anadarko on Aug. 8, including inking several agreements to help Western Midstream operate as an independent midstream company so it can pursue third-party growth opportunities.
The agreements include amendments to the limited partnership agreement that expand unitholders’ rights, including the right to remove and replace Oxy as the general partner.
Western Midstream corporate officers’ employment also will transfer to the partnership from Oxy and result in Oxy’s reporting of Western Midstream’s financial information under the equity method of accounting.
As a result, Oxy won’t consolidate Western Midstream’s statement of operations, balance sheet and statement of cash flows, which will increase clarity and transparency into the financial performance of Oxy’s core businesses, the company said.
Oxy expects to continue its operational relationship with and maintain a significant economic interest in Western Midstream, but will cut it to below 50% this year.
Simmons Energy analyst Ryan Todd said in a note that the “deconsolidation” of Western Midstream’s financials on Oxy’s books (including around $7.6 billion in net debt) was broadly in line with expectations.
“Oxy continues to nudge execution momentum forward into a backdrop for oil prices that look increasingly accommodating,” he said.
CEO and president Vicki Hollub said in a statement that stockholders from Oxy and Western Midstream should benefit from the agreements, which the two entities have been working on finalizing over the last few months.
Hollub added that Oxy’s $565 million sale of its Houston-area real estate to the Howard Hughes Corp., which The Texas Lawbook previously reported, will help the company make progress on its $15 billion divestiture program strengthen its balance sheet. Oxy retired $2 billion in 2021 bank term loans in the fourth quarter with proceeds from asset divestitures and free cash flow.
“We repaid $7 billion of debt less than five months after closing our acquisition of Anadarko and will continue to reduce debt in 2020 with proceeds from asset divestitures and free cash flow,” she said.
Oxy also said it will provide limited administrative services to Western Midstream for up to two years and ink new long-term oil and gas gathering acreage dedications covering 21,000 acres in Weld County, Colorado, supported by minimum volume commitments and complemented by previously executed DJ Basin gas-processing dedications.
V&E advises United PF on its sale to American Securities from JLM, Eagle Merchant
Vinson & Elkins said it advised Planet Fitness operator United PF Partners on its acquisition by New York private equity firm American Securities from JLM Financial Partners and Eagle Merchant Partners. Terms weren’t disclosed.
Partner Wes Jones and associates Luke Thomas and Vaughn Miller led the team, which included partner Sean Becker (labor/employment); partner Todd Way and senior associate Megan James (tax); and partner Shane Tucker and senior associate Heather Johnson (executive compensation/benefits).
Larry Meyer led the deal from JLM while Andrew Hirsekorn did so from Eagle.
Headquartered in Austin and led by CEO and founder Trey Owen, United PF has 1 million members in 160 locations in 14 states. United PF was founded in 2016 through the consolidation of five leading Planet Fitness franchisee groups. It said it’s nearly tripled its club count through organic growth and M&A.
Planet Fitness is one of the largest and most prolific franchisors of workout centers in the U.S., with more than 14.1 million members and 1,899 clubs in the 50 states, the District of Columbia, Puerto Rico, Canada, the Dominican Republic, Panama and Mexico.
Sidley represents Rexel on Gexpro sale to LKCM
Sidley Austin said Jan. 9 it represented France-based Rexel on its agreement to sell its Gexpro Services unit to Fort Worth investment firm LKCM Headwater.
Rexel didn’t reveal terms, but the unit generated $260 million in sales for the 12 months ending Sept. 30, mostly in the U.S., and has 400 employees.
Rexel announced the sale Dec. 31 and the parties expect to close the deal this quarter.
The seller said the transaction will provide enhanced development opportunities for Gexpro, which has been a non-core activity run independently from its electrical distribution business. Rexel added that the divestment will help it focus on its U.S. electrical distribution business and delever.
Rexel said it picked up Gexpro as part of its GE Supply acquisition in 2006.
The target specializes in providing integrated, customized supply chain solutions centered around C-Part products, including fasteners, fabrication, mechanical and electrical, primarily to high specification original equipment manufacturers in the power and renewables, technology, transportation and aerospace industries.
Rexel CEO Patrick Berard said Gexpro’s new owner has distribution experience to add investment and focus, which will drive continued growth and high levels of customer service.
This divestment follows Rexel’s disposal program of around $725 million in 2017 and 2018.
V&E advises Borealis on purchase of 50% of Novealis from Nova Chemicals
Vinson & Elkins said Jan. 10 it advised Austrian polyolefins maker Borealis on its purchase of Nova Chemicals Corp.’s 50% interest in Novealis Holdings, giving it full ownership. Terms weren’t disclosed.
Partner Doug Bland and associate Caroline Kuehn led the team with assistance from partner Alan Alexander and associates Yianni Georgeton and Zach Parker. Advising on tax matters were partners Jason McIntosh and associates Andrew Mandelbaum and Chris Garza.
Formed in 2018, Novealis is the joint venture between affiliates of Borealis and Calgary-based Nova, which then formed a 50/50 joint venture with an affiliate of Total to launch Houston polyethylene maker Bayport Polymers.
The deal has to clear regulators but is expected to close in the first half of this year.
Willkie represents Ontellus on investment by Aquiline
Willkie Farr & Gallagher said Jan. 6 it represented records retrieval services provider Ontellus on an unquantified investment by Aquiline Capital Partners and existing investor the CapStreet Group of Houston.
The Willkie deal team was co-led by partner Bruce Herzog, who offices out of Houston and New York. His team included Robert Jacobson, Garrett Johnston, David Updegrove, Emerson Girardeau, Yaniv Maman, Christian Truman and Jacob Volz, all of Houston.
Weil, Gotshal & Manges counseled Aquiline. Harris Williams was Ontellus’ financial advisor.
New York- and London-based Aquiline provided capital for growth purposes and acquired a majority ownership stake in the company.
Led by CEO Darren Klauser, Ontellus claims to be one of the largest national providers of tech-enabled medical, billing and other claims-related records procurement for insurance companies and law firms. Aquiline’s investment is expected to provide resources and capital to support its continued expansion.
Aquiline chairman and CEO Jeff Greenberg said in a statement that the company is well-positioned to meet growing demand for solutions to address challenges related to exchanging records and using claims information in a secure and compliant manner.
Wick Phillips advises Surge on Norris Training acquisition
Dallas private equity firm Surge Private Equity said it acquired Texas’ Norris Training Systems Inc. on Jan. 3.
Terms weren’t disclosed, but Surge typically seeks majority investments in growing businesses with $2 million to $7.5 million in EBITDA.
Wick Phillips partner Patrick Rose counseled Surge. Martin LLP in Stamford represented the lender Modern Bank.
Thirty-year-old Norris provides training hosting services to 2,500 clients across its five facilities in Houston, Austin, San Antonio and newly launched Dallas. It has a 10% top-line compound annual growth rate over the past 14 years.
Primary sellers David and Linda Norris are keeping a minority share and will continue to operator the company.
With the addition of Norris, Surge now operates five platform investments with three add-on acquisitions. The firm said it hired Thiago Farias to head up portfolio operations, which will include traveling from company to company to assist in the growth and development of the firm’s holdings.
Surge founding partner Tom Beauchamp said in a statement that he sees opportunities to advance the systems and procedures of Norris and supplement its organic expansion with mergers and acquisitions.
JW advises Tarrytown Expocare on Sheridan Capital investment
Jackson Walker advised Austin long-term care pharmacy Tarrytown Expocare on an investment from Sheridan Capital alongside Tarrytown’s management team, which is keeping a stake in the business.
Financial terms weren’t disclosed, but Sheridan typically partners with companies that have EBITDA from $3 million to $15 million.
Corporate partners Brad Knippa and Mike Laussade led the team with additional assistance from partner Mike Meskill and associates Wilson Albright and Kathleen Cullen.
Partners Virginia Mimmack (healthcare), Raman Dewan (intellectual property), Cassie Ross (real estate), Greta Cowart (ERISA), Nathan Smithson (tax) and Steve Moore (tax) provided subject matter expertise on the transaction.
Pepper Hamilton was Tarrytown’s regulatory counsel and GuideCap Partners was its financial advisor. McDermott Will & Emery represented Sheridan with attorneys out of Miami.
Oxford Finance provided a $87.5 million term loan and revolving line of credit.
Sean Dempsey, Jonathan Lewis, Alexander Kain and Stephen Lestyan led the deal from Sheridan.
Founded in 2013, Tarrytown specializes in providing medications to intellectual and developmental disability communities, serving more than 1,900 group homes. The partnership will allow the company to continue building infrastructure and accelerate national expansion.
Tarrytown founder and CEO Mark Newberry said Sheridan’s experience in accelerating growth through innovation and corporate infrastructure investment will allow the company to better service individuals and group home providers.
Sean Dempsey and Jonathan Lewis led the deal from Sheridan, a Chicago-based healthcare private equity firm that focuses on lower middle market buyouts and growth equity in the U.S. and Canada.
Willkie represents Seaport on Linen King investment
Willkie Farr & Gallagher said it represented Seaport Capital on its investment in Tulsa-based Linen King.
Terms weren’t disclosed, but New York-based Seaport typically invests $10 million to $30 million in equity capital in companies generating $3 million to $15 million in EBITDA.
Partner Bruce Herzog, who offices out of Houston and New York, co-led the team. Stephens Inc. was Linen King’s financial advisor.
Seaport announced the investment Jan. 7, saying that the company’s founders and operators Leonard and LK McCullough also participated to support the continued growth of the company.
Founded in 1999, Linen King provides outsourced laundry cleaning and management services to hospitals, health systems and healthcare clinics in the regions it serves, which include the south central and Midwest U.S. It has laundry facilities in five states.
Drew Meyers and Bob Tamashunas led the deal at Seaport, which typically provides founders and entrepreneurs with financial and operational resources to expand their businesses.
Winston advises Landpoint on sale to Cotton Creek
Winston & Strawn said it represented Landpoint on the sale of all of its equity interests to Austin-based Cotton Creek Capital.
Cotton Creek didn’t disclose terms, but it typically targets businesses with EBITDA between $5 million and $15 million and invests between $10 million and $40 million in equity in buyouts, recapitalizations, buy-and-builds and corporate divestitures.
Dallas partner David Lange led the deal team, which included associates Patrick Luthen, Andrew Betaque and Danielle Marr and attorneys in the firm’s Chicago office. Lee Rash led the deal from Cotton Creek.
Bossier City, La.-based Landpoint provides geospatial services to infrastructure end-markets. The deal includes units King Surveyors and West Co. of Midland as well as Terra Surveying Co., which it acquired at the same time as the sale to Cotton Creek.
Founded in Arkansas in 1984 as a provider of commercial land surveying, Landpoint expanded its core service offerings to include aerial data collection, 3D laser scanning and geographic information systems.
Led by president Chad Souter, the company has nine offices primarily in the south-central U.S. It has surveyors registered in 13 states with customers in midstream oil and gas, electrical transmission and distribution, water conveyance and fiber optic networks.
Latham advises on capital markets transactions for five clients valued at $7.7B
Latham & Watkins said Jan. 9 its Houston office advised on capital markets transactions for five clients worth at least $7.7 billion.
The firm counseled Superior Energy Services on an exchange offer of up to $500 million of unit SESI’s $800 million in 7.125% senior notes due 2021 for up to $500 million of newly issued 7.125% senior notes due 2021 and cash.
Partner Catherine Ozdogan and associates Benjamin Gelfand, Chris Wood and Whitley Johnson worked on finance matters; partner Jim Cole and associate Michael Rowe handled tax; and partner Joel Mack worked on environmental issues.
D.F. King & Co., Inc. is the information agent for the exchange offer and consent solicitation.
Latham also advised Energy Transfer on offerings of $4.5 billion in senior notes and $1.6 billion in preferred units.
Houston partner Bill Finnegan led that team with associates Kevin Richardson, Dan Harrist, Madeleine Neet, Caroline Ellerbe, Lexi Udeh, Kate Wang and Rosey Jamail. Houston tax partners Tim Fenn and Bryant Lee also helped out along with associates Michael Rowe and Marianne Standley.
Hunton Andrews Kurth assisted the underwriters with a team led by partner Jordan Hirsch and including corporate partner Mike O’Leary and associates Chris Adcock, Erin Juvenal, Michael Wright, Hannah Fred and Casey Shaw, all of Houston.
HuntonAK specialists included partner Rob Taylor in Houston on opinions, partner Lisa Shelton in Austin on environmental matters, partner Robert McNamara and associate Tim Strother in Houston on tax matters and partner O’Banion Williams in Houston on real property matters.
Energy Transfer plans to use the net proceeds of $6.04 billion before offering expenses to repay debt, including prepayment of certain senior indebtedness, and for general partnership purposes.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG Securities Americas Inc., Natixis Securities Americas and TD Securities (USA) were joint book-running managers for the offerings.
Latham said it also advised the initial purchasers of CVR Energy Inc.’s $1 billion private placement of senior notes.
Houston partners David Miller and Trevor Lavelle led the group with associates Madeleine Neet, Jordan Mack, Luke Strother and Danielle Kinchen.
The finance team included Houston partner Daniel Tristan and Dallas associate Josh Espinosa, the tax group included Houston partner Robert Phillpott and Houston associate Katie McEvilly and environmental matters were handled by Austin partner Aileen Hooks.
The issue consisted of $600 million in 5.250% senior unsecured notes due 2025 and $400 million in 5.750% senior unsecured notes due 2028. The offering is expected to close Jan. 27.
CVR intends to use the net proceeds to fund the previously announced redemption of all the outstanding 6.500% second lien senior secured notes due 2022 issued by units CVR Refining and Coffeyville Finance Inc. The rest will be used for general corporate purposes, which may include funding acquisitions, capital projects and/or share repurchases or other distributions to its stockholders.
Wells Fargo Bank is the trustee for the 2022 Notes and is the paying agent for the redemption.
Latham also advised on certain tax matters related to the $3 billion senior notes offering by Enterprise Products Partners, including Houston partners Tim Fenn and Jim Cole.
Enterprise intends to use the proceeds to repay debt and fund organic growth capital expenditures. The joint book-running managers were Citigroup Global Markets Inc., Barclays Capital Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities.
Finally, Latham said it assisted the underwriters on Kimbell Royalty’s public offering of 5 million common units.
Houston partner John Greer led the deal with associates Monica White, Clayton Heery, Drew Tengler-West, Whitley Johnson and Katie Walker. Houston partners Tim Fenn and Bryant Lee with associate Michael Rowe were on tax and Houston partner Joel Mack was on environmental.
Certain selling unitholders of Kimbell plan to grant the underwriters an option to purchase up to 750,000 more common units at the same price.
Kimbell plans to use the net proceeds to fund a portion of the cash purchase price for its pending acquisition of oil and natural gas mineral and royalty interests held by Springbok Energy Partners and Springbok Energy Partners II (see item above) and repay borrowings under its revolver. It won’t receive any of the proceeds from the sale of the 750,000 units.
Credit Suisse Securities (USA) and Raymond James & Associates Inc. are the lead book-running managers for the offering. Goldman Sachs, RBC Capital Markets and UBS Securities also are bookrunners.
Gibson Dunn, Latham work on Western Midstream’s $3.5B notes offering
Gibson, Dunn & Crutcher and Latham & Watkins advised on Western Midstream Partners’ $3.5 billion senior notes offering.
Gibson Dunn said Jan. 10 it counseled the underwriters, including Houston partner Hillary Holmes, Dallas partner Doug Rayburn and Houston associates Harrison Tucker, Melissa Pick, Brian Downs and Monika Kluziak.
Houston partner James Chenoweth and Houston associate Collin Metcalf advised on tax aspects.
Latham & Watkins said Jan. 13 it assisted Western Midstream, including Houston partner John Greer with associates Ryan Lynch, Madeleine Neet, Ashlyn Royall and Sarah Dunn. Houston partner Tim Fenn and associate Michael Rowe weighed in on tax matters and Houston partner Joel Mack did so on environmental issues.
Western Midstream said Jan. 9 that it priced the offering of $300 million in floating rate senior notes due 2023, $1 billion in 3.10% senior notes due 2025, $1.2 billion in 4.05% senior notes due 2030 and $1 billion in 5.25% senior notes due 2050. The offering was expected to close Jan. 13.
Western Midstream plans to use the net proceeds to repay and terminate WES Operating’s $3 billion term loan credit facility. WES Operating will use the remaining net proceeds for general partnership purposes, including repayment of borrowings under its revolver.
The underwriters were led by Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and PNC Capital Markets.
Western Midstream is a master limited partnership that owns oil and natural gas gathering, compression, treating, processing and transportation assets in the Rockies, Pennsylvania, Texas and New Mexico. It also gathers and disposes of water from the production process and buys and sells natural gas, natural gas liquids and condensate for itself and for customers.
V&E, Hogan work on Gulf Coast Ammonia’s development, financing of $1B plant
Vinson & Elkins said Jan. 8 it represented Gulf Coast Ammonia as project and borrower’s counsel and advised on the development and financing for the company’s anhydrous ammonia plant in Texas City near Galveston.
The team was led by Kaam Sahely and Alan Alexander with assistance from Creighton Smith on the debt and equity financing. Others were Mark Brasher, Stephanie Coco, Caroline McDonald and Ryan Logan on project development matters; Nettie Downs on the equity financing; and Beto Cardenas on local tax matters.
The work included the negotiation of commercial contracts and debt and equity financing agreements. Construction capital will be provided by a joint venture of Starwood Energy Group and German energy trading firm Mabanaft. The project financing closed Dec. 30.
King & Spalding was Starwood’s M&A/private equity counsel out of New York. Agrifos, which initiated the project with Mabanaft and Macquarie Capital, was represented by Seward & Kissel.
Hogan Lovells US was Mabanaft’s M&A/projects counsel with a team led by Houston partner Greg Hill and including Houston partner David Locascio.
The facility will be able to produce 1.3 million tons of ammonia per year from hydrogen and nitrogen gas. Construction will begin in early this year with commissioning expected in the first half of 2023. The project should create more than 40 permanent jobs and about 1,000 temporary construction positions.
Starwood and Mabanaft will own the facility. Oiltanking North America, a sister company of Mabanaft, will own and operate the marine facilities. It’s secured long-term offtake contracts for most of the production capacity and long-term supply agreements for its feedstock.
The parties said the facility will be the world’s largest single-train ammonia synthesis loop and will raise the bar in terms of the safe and efficient production and storage of ammonia.
Gulf Coast Ammonia’s new CEO is Ken Koye. Tim Bullock is CEO of Mabanaft while Starwood’s CEO is Himanshu Saxena, who said the project is its first investment in a highly contracted downstream/chemical development project.
“The shale gas revolution and resulting low prices of natural gas have allowed projects like this to benefit from the sustained arbitrage between the value of a global commodity and the cost of a local commodity,” he said.
Philipp Pletka also worked on the deal from Starwood while Hamza Slimani did so from Agrifos and is the project’s outgoing CEO.
Nicholas Gole was involved from Macquarie, which was co-sponsor, equity arranger, debt arranger and financial advisor on the transaction. He led the deal along with Alex Erlikh and Devin Blondes with assistance from Peter Zhu and Brian Callahan on the equity and debt arranging.
Gibson Dunn assists Midcoast Energy on $830M refinancing
Gibson Dunn represented ArcLight Capital Partners-backed Midcoast Energy Holdings on a $830 million refinancing with Korean lenders and institutional investors.
The refinancing involves a Midcoast unit that indirectly holds a 35% interest in Texas Express, a 594-mile, 20-inch natural gas liquids pipeline that begins in Skellytown, Texas, and ends in Mt. Belvieu, Texas. Midcoast will continue to own and control its 35% interest in Texas Express.
Houston-based Midcoast Energy has gathering and processing platforms in the Anadarko and East Texas supply basins of North America and engages in the transporting and marketing of natural gas and natural gas liquids through its logistics and marketing segment.
Boston-based ArcLight has invested around $22 billion in more than 100 transactions since its 2001 inception.
V&E advises New York Mortgage on $183M stock offering
Vinson & Elkins said Jan. 9 it advised New York Mortgage Trust Inc., known as NYMT, in connection with its $183 million underwritten public offering of common stock.
The team included corporate finance counsel Doug Lionberger in Houston.
NYMT plans to use the net proceeds for general business purposes, which may include acquiring single-family residential and multi-family credit investments and other types of mortgage-related and residential housing-related assets.
The banks included Morgan Stanley, J.P. Morgan Securities and UBS Securities.
The owner of the Lone Star Brewery in San Antonio filed for Chapter 11 on Jan. 6 in U.S. Bankruptcy Court for the western district of Texas, preempting a plan by lender NCC Financial to auction off the property as part of a liquidation. The company reported $30 in cash and about $27 million in debt owned to its creditors, including BridgeInvest and Princeton Capital Corp. Debtors counsel is Thomas Rice at Pulman Cappuccio & Pullen in San Antonio.
The property, which was purchased by Houston investment firm Parkview Capital Credit in 2017, was going to be redeveloped into residential, entertainment and office space by Aqualand Development of San Marcos and national retail developer CBL Properties, but CBL withdrew after negative reports surfaced about Aqualand partner Mark Smith. Beer production at the brewery was stopped in 1996 by owner Stroh Brewery Co., which shifted its production to Longview (Stroh was purchased by Pabst in 1999).
NGP Energy Capital-backed Outrigger Energy II announced last week that it entered into a long-term definitive gas gathering and processing agreement with Exxon Mobil unit XTO Energy Inc. to service XTO’s production in Williams County, North Dakota. The deal was handled in-house by Dustin Kitson at Outrigger in Denver and Gibson Laborde at Exxon Mobil in Houston. The gathering system will include a 70-mile gas pipeline originating in eastern Williams County and terminating at a newcryogenic gas processing plant west of Williston, North Dakota.