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Seven Am Law 100 Firms Take Lead on Apollo-Led $7.2 Billion LBO

February 25, 2012 3:10 PM

Seven Am Law 100 Firms Take Lead on Apollo-Led $7.2 Billion LBO

Posted by Brian Baxter

A private equity consortium led by Apollo Global Management has concluded to acquire El Paso Corporation’s oil and gas scrutiny and prolongation units in a $7.15 billion leveraged buyout that Bloomberg reports is a second-largest private equity takeover of an appetite producer.

El Paso, a association founded in 1928 by Houston warn Paul Kayser, announced late Friday that it had reached an agreement to sell a businesses to a organisation stoical of Apollo, Access Industries, and Riverstone Holdings.

The understanding is designed to assist a sale of El Paso to Houston-based appetite association Kinder Morgan, that announced in Nov it would acquire a oil and gas opposition for $38 billion, including debt. That transaction, that is scheduled to tighten in a second quarter of this year, will emanate a largest healthy gas tube network in a U.S. and a fourth-largest appetite association in North America.

When El Paso announced plans final year to sell off a scrutiny and prolongation businesses, it defended Wachtell, Lipton, Rosen Katz to advise on a process. But with Kinder Morgan, represented by Bracewell Giuliani and Weil, Gotshal Manges, now in line to acquire El Paso, its lawyers have taken over the transactional work associated to a sale. Weil corporate partners Jay Tabor and Rodney Moore in Dallas are advising El Paso on a divestiture of a scrutiny and prolongation units.

Lawyers from Debevoise Plimpton, O’Melveny MyersPaul, Weiss, Rifkind, Wharton Garrison, Vinson Elkins, and Willkie Farr Gallagher are advising a private equity consortium on a purchase of El Paso assets.

Apollo, that is formulation $5.5 billion in debt financing for a acquisition, tapped Paul Weiss to offer as warn to a financier organisation on a due transaction. MA partner John Scott, financial partners Gregory Ezring and Mark Wlazlo, taxation partner Brad Okun, emissary corporate chair Marco Masotti, corporate partner James Schwab, and MA warn Brian Finnegan are heading a organisation from Paul Weiss operative on a deal.

The firm’s work for Apollo got a huge boost final year when it recruited 7 corporate partners from O’Melveny, including stream Paul Weiss partners Ezring, Wlazlo, Okun, and Scott, all of whom rubbed Apollo work. Apollo’s ubiquitous counsel, John Suydam, is a former conduct of O’Melveny’s MA practice.

In December, Paul Weiss suggested a private equity organisation on its acquisition of investment manager Stone Tower Capital. That transaction came only a few weeks after Apollo incited to Akin Gump Strauss Hauer Feld for warn on the $772 million sale of Parallel Petroleum to Samsung and Korea National Oil.

O’Melveny environmental use chair Eric Rothenberg in New York is portion as special warn to Apollo on appetite and environmental matters associated to a divestitures by El Paso. Last year O’Melveny teamed with Paul Weiss in advising Apollo on a $510 million merger of party association CKX. O’Melveny also rubbed a $565 million initial open charity for Apollo final year, according to a prior reports.

New York–based Access, that is tranquil by Russian billionaire Len Blavatnik, is being suggested by a organisation of Debevoise lawyers led by MA partners Kevin Rinker and Jeffrey Ross and taxation partner David Schnabel. The organisation suggested Access final year on a $3.3 billion merger of Warner Music Group. Alejandro Moreno serves as general warn for Access.

Willkie Farr corporate partners Bruce Herzog and Adam Turteltaub in New York are representing Riverstone in a matter. Serving as cocounsel to Riverstone and Apollo are a organisation of some-more than 50 Vinson lawyers led by MA partners James Fox, David Cohen, and Fielding “Tres” Cochran III, and worker advantages partner David D’Alessandro.

Stephen Coats, a former Vinson partner, serves as Riverstone’s ubiquitous counsel. The New York-based private equity organisation was partial of a organisation that took Kinder Morgan private in a $15 billion buyout in 2006.

Kinder Morgan became a open association again a year ago this month after it completed a scarcely $3 billion IPO, a largest private equity–backed IPO in U.S. story and a largest appetite zone charity given 1998. (Bracewell took a lead for Kinder Morgan on that listing, according to our previous reports.)

Joseph Listengart serves as ubiquitous warn for Kinder Morgan, while Henry Cornell, who once used during Davis Polk Wardwell, serves on a company’s house of directors. El Paso’s ubiquitous warn is Robert Baker. Anthony Hall, Jr., a former partner during Jackson Walker, is a member of El Paso’s board.

Completion of a sale of El Paso’s scrutiny and prolongation units is dependent upon a successful tighten of a company’s merger by Kinder Morgan. Paul Hastings leveraged financial partners Michael Baker and Richard Farley and corporate parter Michele Cohen are advising RBC Capital Markets in tie with a $4.5 billion debt financing joining to support a leveraged buyout.

One intensity snarl is a lawsuit filed in Delaware by El Paso shareholders claiming that a sale is injured since of an alleged dispute involving Goldman Sachs. The New York Times’s DealBook has a breakdown on some of a issues during play in a lawsuit before Delaware’s Chancery Court.

Weil and Delaware’s Seitz Ross Aronstam Moritz are representing Kinder Morgan in a suit, while El Paso has incited to Wachtell and Delaware’s Potter Anderson  Corroon. Court annals show that Sullivan Cromwell and Delaware’s Richards, Layton Finger are representing Goldman.

The due private equity buyout of El Paso’s resources comes on a heels of another vast oil and gas LBO announced in November: a KKR-led consortium’s $7.2 billion merger of secretly hold Samson Investment Company.

Davis Polk, Latham Watkins, and Simpson Thacher Bartlett suggested a financier organisation on that takeover, according to a prior reports. Simpson followed adult that understanding a week after by advising KKR on a $1.1 billion merger of Capital Safety, a builder of reserve apparatus for a construction and appetite industries.

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