MLP Lending and Finance

Hunton Andrews Kurth was involved in the creation of the first master limited partnership (MLP) in the early 1980s and served as issuer’s counsel on the first “drop down” MLP in 1983. Since the 1980s, we have been a market leader in MLP transactions because of our deep experience in the complex partnership, securities, tax and business issues associated with creating, governing and growing MLPs. For example, we have years of experience representing both (1) lenders to MLPs and (2) all of the various borrowing entities, including MLPs, general partners, subsidiaries and sponsors in the negotiation of bank credit facilities and loans that incorporate MLP-specific terms.

Financing agreements that involve an MLP as a borrower, guarantor or as a subsidiary or parent to a borrower or guarantor require consideration of specific terms and conditions unique to an MLP. These terms and conditions are further influenced by a borrower’s industry, the size of the lending facility, the size and maturity of the MLP, changes in the economy and fluctuations in commodity prices. Because of our deep experience with both MLPs and commercial lending and syndicated finance in general, we stay on top of current market trends and have the experience and foresight to advise our clients accordingly.  

Representative Experience 

Lender Representation (MLP and related entities)

  • Represented a financial bank in an $800 million credit facility to a petroleum pipeline corporation.
  • Represented a multinational investment bank in a $5 billion financing ($3 billion revolving facility and $2 billion term loan) for a Texas-based petroleum and natural gas exploration company.
  • Represented a real estate management company, as administrative agent, in a $1.2 billion syndicated term loan facility, $500 million syndicated term loan facility and $200 million syndicated revolving credit facility to a midstream energy holding company.
  • Represented a global financial institution, as administrative agent, in a $200 million syndicated term loan facility and $100 million syndicated revolving credit facility to a publicly traded MLP the oil pipeline transportation, marketing and storage business.
  • Represented a global financial institution, as administrative agent, in a $350 million syndicated revolving credit facility to a Fortune 500 petroleum services company.

Borrower Representation (MLP and related entities)

  • Represented a compression service and equipment company in its $400 million revolving credit facility and related acquisition financing with a multinational bank as the lead lender.
  • Amendment of revolving credit facility valued at $200 million in connection with ongoing representation of an oil and gas services company.
  • Represented an energy company in a $5.9 billion construction and term loan financing of the first four export liquefaction trains of the Sabine Pass LNG Liquefaction Project, comprised of $4.4 billion of commercial bank debt and $1.5 billion of debt issued or covered by the official export credit agency of South Korea.
  • Represented an oil and gas producer in connection with its $800,000,000 revolving credit facility.
  • Represented a pipeline transportation company in a $700 million revolving credit facility.