Shearman & Sterling represented Oaktree Capital’s Transportation Infrastructure Fund (TIF) in its purchase of $200 million of Class D Convertible Preferred Shares (“TIF Preferred Shares”) in Watco Companies, L.L.C., and TIF’s commitment to purchase an additional $250 million of TIF Preferred Shares in the next two years, subject to certain conditions. The agreement to purchase the TIF Preferred Shares included certain governance and board appointment rights.
Watco is a Pittsburg, Kansas-based transportation company providing transportation, terminal and port, mechanical, and supply chain services for customers throughout North America and Australia and is one of the largest short line rail transportation service providers in the U.S. and Australia.
Oaktree is a leader among global investment managers specializing in alternative investments, with $124 billion in assets under management as of September 30, 2018. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities.