Morgan Stanley Senior Funding, Inc., Barclays Bank PLC and Wells Fargo Securities, LLC Provide $1.9 Billion Financing to Gulf Oil

September 07, 2016

NEW YORK – Paul Hastings LLP, a leading global law firm, represented Morgan Stanley Senior Funding, Inc., Barclays Bank PLC and Wells Fargo Securities, LLC as lead arrangers in connection with a $1.15 billion senior secured first lien term facility the proceeds of which were used to fund a dividend recapitalization and refinancing and consolidation of debt facilities associated with ArcLight’s portfolio companies Gulf Oil Limited Partnership, Penn Products Holdings, LLC and Chelsea Petroleum Productive Holdings, LLC. The financing contains pioneering provisions regarding future joint ownership of the companies by ArcLight and a master limited partnership. In connection with this financing, Paul Hastings also represented BMO Capital Markets Corp. and Morgan Stanley Senior Funding, Inc. as the lead arrangers in the upsizing of the asset-based revolving facility to $775 million, with tailored cross-priority intercreditor arrangements.

The Paul Hastings team was led by Leverage Finance partners John Cobb and Sanjay Thaper, and included of counsel Benjamin Cheng, and associates Debra Yang, Kareem Roe and Matthew Bartlett.

This financing marks the fourth financing of an ArcLight portfolio company that the Leveraged Finance team at Paul Hastings has closed since the end of 2014. Previous deals include:

Representing Morgan Stanley Senior Funding, Inc. as the sole lead arranger in connection with a $750 million financing of ArcLight’s acquisition of Penn Products Terminals, a network of 12 refined products storage terminal facilities and 19 energy companies based in Pennsylvania.
Representing Morgan Stanley Senior Funding, Inc. and BMO Capital Markets Corp. as the lead arrangers in a $1.125 billion financing for the acquisition by ArcLight of Gulf Oil Limited Partnership from its parent company, Cumberland Farms, Inc.
Representing Morgan Stanley Senior Funding, Inc. and Barclays Banks PLC as the lead arrangers in a $391 million senior secured credit facility for Chief Power Finance, LLC in connection with ArcLight’s acquisition of certain ownership interests in two coal-fired generating facilities.

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