Brazos Electric Power Cooperative’s $350 Million DIP Financing

Davis Polk advised the agent, J.P. Morgan Chase Bank, in the transaction.

Brazos Electric Power Cooperative, Inc. (“Brazos Electric”) closed a $350 million superpriority secured debtor-in-possession revolving credit facility.

Brazos Electric filed for chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas on March 1, 2021 in the wake of that winter storm that blanketed the state of Texas in February 2021, and sought approval of the DIP financing in May 2021.

Brazos Electric is a 4,000 megawatt generation and transmission cooperative whose members’ service territory extends across 68 counties from the Texas Panhandle to Houston. Organized in 1941, Brazos Electric was the first cooperative formed in the Lone Star state for the purpose of generating and supplying electrical power. Today, it is the largest generation and transmission cooperative in Texas. Brazos Electric is the wholesale power supplier for its 16 member-owner distribution cooperatives.

The Davis Polk restructuring team included partners Damian S. Schaible (Picture) and Darren S. Klein, counsel Aryeh Ethan Falk and associates Erik Jerrard and Roy G. Dixon III. The finance team included partner Kenneth J. Steinberg, counsel Christian Fischer and associate Michael Katz. Counsel Susan D. Kennedy and associate Ben Somogyi provided real estate advice.

Involved fees earner: Roy Dixon, III – Davis Polk & Wardwell; Aryeh Falk – Davis Polk & Wardwell; Christian Fischer – Davis Polk & Wardwell; Erik Jerrard – Davis Polk & Wardwell; Michael Katz – Davis Polk & Wardwell; Susan Kennedy – Davis Polk & Wardwell; Darren Klein – Davis Polk & Wardwell; Damian Schaible – Davis Polk & Wardwell; Ben Somogyi – Davis Polk & Wardwell; Kenneth Steinberg – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: JP Morgan Chase & Co.;

Martina Bellini

Author: Martina Bellini