The financing practice of Bryan Cave’s Energy and Natural Resources Client Service Group has evolved through service to our clients in all facets of the energy and natural resources industries. Bryan Cave represents borrowers and regional, national and international banks, private equity, hedge funds, institutional lenders and other financial institutions in acquisition and development financing and hedging transactions in the energy and natural resources area. We have a broad background in oil and gas, mining, energy and alternative energy law, and a familiarity with the assets involved and their operation, including producing and non-producing oil and gas properties, precious metals, hard-rock, coal and industrial minerals, gas processing facilities, gathering systems, gas storage facilities, pipelines, refineries, co-generation facilities and alternative and renewable energy.
We have been involved in a variety of complex energy and natural resources financing transactions, including federal tax credit transactions, production payments, net profit interests, warrants, stock options and other equity kickers and split stream financing.
Due to the mixture of federal, state and Indian lands, and because financing often involves multiple states, energy and natural resources lending in the Rocky Mountain Region in particular involves challenges that require specialized knowledge and novel solutions. Our lawyers are licensed in most of the states comprising the Rocky Mountain Region, including Colorado, Utah, Wyoming, Nevada and Montana, and have an in-depth understanding of the lending and title requirements, and the interrelation of federal, Indian (tribal and allotted) and state land and mineral issues unique to this region.
Examples of the types of services and advice that Bryan Cave’s financing and hedging lawyers can provide include:
Hedging And Derivatives
- Conventional oil and gas production loans.
- Credit facilities for the development of oil and gas properties.
- Project financing for renewable and alternative energy projects.
- Credit facilities involving so-called “equity kickers,” including warrants, options, net profit interests and overrides.
- Mezzanine financing.
- Production payment financing.
- Loans for the development of mines, including hardrock, coal and industrial minerals.
- Loans secured by various mineral properties, including coal, gold, silver, uranium, beryllium, copper, dolomite and other minerals.
- Loans secured by interests in Indian lands, including tribal and allotted lands.
- Loans secured by federal oil and gas and mineral leases.
- Loans secured by patented and unpatented mining claims.
- Loans secured by gas processing plants, gathering systems and pipelines.
- Loans secured by refineries.
- Loans secured by co-generation facilities.
- Loans secured by renewable and alternative energy projects, such as solar and wind projects.
Bryan Cave's energy and natural resources derivatives group has extensive experience in the negotiation and documentation of a broad range of derivatives transactions. Bryan Cave represents oil and gas companies and utilities in the design and documentation of gas hedging programs, mining companies in the construction of metal and cost-side hedging programs, corporate and finance clients in hedging currency and interest rate exposure, and high net worth individuals in minimizing exposure to large securities holdings with costless collars and other equity derivative products.
Our practice includes all aspects of derivatives law. We counsel clients regarding U.S. regulation of over-the-counter derivatives. We have extensive experience in the negotiation of International Swaps and Derivatives Association (ISDA) master agreements and related margin and collateral agreements (under both New York and English law), with particular emphasis on issues of concern to corporate and individual counterparties. We work to ensure that interest rate and currency swap documentation is integrated with our clients' financing documents and adequately addresses inter-creditor issues. We coordinate with our tax practice and our clients' accountants to address the tax treatment of and impact of derivatives on the balance sheet, including U.S. Federal tax treatment of hedging proceeds and accounting issues under applicable accounting standards for derivatives. We also team with our bankruptcy lawyers in workouts and bankruptcies involving substantial derivatives exposures.
Recent transactions of Bryan Cave's derivatives group include:
- Negotiation of call option and warrant transactions.
- Negotiation of call spread options.
- Securities advice and filings for forward contract and option transactions.
- Margin loan and costless collar.
- Assist investors with respect to structuring, negotiating and documenting equity derivatives, including total return swaps, options linked to equity indices and leveraged equity derivative products.
- Design, negotiation and documentation of multiple-counterparty precious metal, copper, fuel and currency hedging programs for domestic and foreign subsidiaries of an international mining company.
- Cross-currency and interest rate swaps to hedge loan and bond indebtedness of a major international broadband company, with a consortium of major international banks.
- Prepaid gold forward sale transaction for major international mining company.
- Design and negotiation of natural gas hedging program for Western U.S. natural gas utility company.
- Advice regarding the workout and successful restructuring of a multiple-counterparty metal and currency hedge book.
- Advice to creditors and successful settlement of energy derivatives transactions in the Enron bankruptcy and interest rate swaps in the Lehman bankruptcy.
- Advising financial institutions with respect to various types of derivatives products offered to end-user customers.