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News Aug 12, 2014

Shearman & Sterling Advises on Sasol and INEOS Joint Venture in Connection with Sasol’s North American Market Expansion

Shearman & Sterling advised Sasol Limited (“Sasol”) and its affiliates in connection with the entry by Sasol Chemicals North America LLC into a 50/50 joint venture with INEOS Olefins & Polymers USA to construct, finance, own and operate a high-density polyethylene (HDPE) plant in LaPorte, Texas. The firm also advised Sasol on the joint venture’s approximately $420 million Term Loan B financing with Barclays as the lead arranger and bookrunner, with Citigroup also a bookrunner, the proceeds of which will be applied to pay a portion of construction costs.

The plant will have the capability to produce a range of HDPE products but will focus on premium high-growth bimodal pipe and bimodal film resins. This project complements Sasol's North American growth strategy, which encompasses a proposed ethane cracker complex and gas-to-liquids facility in Southwest Louisiana, which is contemplated to be the source of Sasol’s ethylene inputs for the HDPE plant.

The Shearman & Sterling team included partners Cynthia Urda Kassis (New York-Project Development & Finance), Howard Steinberg (New York-Project Development & Finance), Richard Price (London-Capital Markets), Kristen Garry (Washington, DC-Tax), and Wayne Dale Collins (New York-Antitrust); counsel Paul Epstein (New York-Project Development & Finance), Sean Skiffington (Toronto-Mergers & Acquisitions), and Mathias Stöcker (Frankfurt-Antitrust); and associates Nathan Mee (San Francisco-Capital Markets), Nathan Tasso (Washington, DC-Tax), Matt Wochok (Washington, DC-Tax), Rob Sein (New York-Real Estate), Julie Fleischman (New York-Real Estate) and Kelly Karapetyan (New York-Antitrust).