$800 million loan facility for Yuhuang Chemical, Inc.

Bracewell LLP represented Yuhuang Chemical, Inc. (YCI), as borrower, in an $800 million loan facility for the construction of a methanol plant with a nameplate capacity of approximately 1.8 million metric tons/year in St. James Parish, Louisiana.

YCI is a subsidiary of the China-based Shandong Yuhuang Chemical Company. Located on a 1,300 acre greenfield site and comprising $1.5 billion in total investment, the project is reported to be the largest Chinese-invested greenfield project in the Gulf of Mexico region.

The loan was arranged by Bank of China, New York Branch; Bank of China, Shandong Branch; The Export-Import Bank of China, Shandong Branch; and Heze Branch of Evergrowing Bank Co., Ltd. and is the first construction credit facility in favor of a U.S.-based project provided by a bank syndicate comprised entirely of Chinese banks. Bank of China, New York Branch also serves as the administrative agent for the transaction, with The Bank of New York Mellon acting as collateral agent.

YCI began construction of the project on January 9, 2017. Methanol sales are planned to begin during the fourth quarter of 2019, both locally and globally via railroad, truck, and ship.

YCI lawyers involved in this transaction included general counsel Jerry N. Jones.

Bracewell lawyers working on this deal included Tom M. Tomlinson (Picture), Robin J. Miles, Ron I. Erlichman, Michele J. Alexander, Tim Wilkins, Richard Alonso and Bruce R. Jocz, Joshua C. Zive, Vivian Y. Ouyang, David J. Harty, Jeris D. Brunette, Luke A. Smith, Kristen A. Wong, Brittany M. Pemberton, Anne E. Holth, William B. Simmons and Jessica M. Monastra

Other lawyers involved in this matter included a team from the Louisiana-based firm Bradley, Murchison, Kelly & Shea LLP.

Involved fees earner: Thomas Tomlinson – Bracewell & Giuliani; Robin Miles – Bracewell & Giuliani; Vivian Ouyang – Bracewell & Giuliani; David Harty – Bracewell & Giuliani; Luke Smith – Bracewell & Giuliani; Kristen Wong – Bracewell & Giuliani; Ron I. Erlichman – Bracewell & Giuliani; Jeris Diana Brunette – Bracewell & Giuliani; William Simmons – Bracewell & Giuliani; Jessica Monastra – Bracewell & Giuliani; Michele Alexander – Bracewell & Giuliani; Anne Holth – Bracewell & Giuliani; Timothy Wilkins – Bracewell & Giuliani; Brittany Pemberton – Bracewell & Giuliani; Bruce Jocz – Bracewell & Giuliani; Joshua Zive – Bracewell & Giuliani;

Law Firms: Bracewell & Giuliani;

Clients: Yuhuang Chemical, Inc.;

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Author: Ambrogio Visconti