August 17, 2010 5:19 PM
More Firms Line Up For BP Transactional Work
Posted by Brian Baxter
Seeking to defray cleanup and compensation costs from the Deepwater Horizon disaster, BP is borrowing $5 billion from a consortium of major banks by tying the loans to revenues from two oil fields, according to Bloomberg.
Helping the embattled British oil giant structure the deal were Linklaters energy and infrastructure partner Manzer Ijaz and international banking partner Toby Grimstone, Legal Week reports. The firm is the latest to be retained by BP to advise on the sale or pledging of assets to offset the mounting bills the company is paying to cleanup the massive spill in the Gulf of Mexico.
BP hired Cozen O'Connor last week to help draft rules on evaluating claims for a $20 billion compensation fund it is financing to compensate businesses and individual victims of the disaster. In addition to such other firms as Wilmer Cutler Pickering Hale and Dorr, Kirkland & Ellis, and Arnold & Porter, which are handling spill-related litigation and public policy work, BP has also been spreading transactional assignments around.
Freshfields Bruckhaus Deringer, for instance, was hired by BP in early July to provide takeover defense counsel in the event that one of the company's rivals mounted an unsolicited takeover bid. Also last month, BP tapped Sullivan & Cromwell, Gardere Wynne Sewell, CMS Cameron McKenna, and Canada's Frasner Milner Casgrain for a $7 billion sale of assets in Canada, Egypt, and the U.S. And earlier this month, BP turned to Morgan, Lewis & Bockius to advise on the $2 billion sale of select South American assets. Further asset sales in Vietnam and Pakistan are planned within the next 12 months, according to Bloomberg.
Legal Week reports that the latest BP deal involves using oil revenues from oil fields in Angola and Azerbaijan to secure the $5 billion loan. Herbert Smith advised arranging banks BNP Paribas and Standard Chartered on the $3 billion Angola loan, while Baker & McKenzie represented lender banks Société Générale and the Royal Bank of Scotland on the $2 billion Azerbaijan deal.
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