Mercuria and Aleph Commodities’ £12 Million Debt and Equity Investment in Angus Energy plc

Herbert Smith Freehills has advised Mercuria on the deal.

The investment will support Angus’s development of the Saltfleetby gas field, one of a number of its UK onshore gas assets, co-owned with Saltfleetby Energy. It will also support Angus on its energy transition projects, including repurposing onshore hydrocarbon wells for geothermal energy production and storage.
 
The financing arrangements involve Mercuria and Aleph Commodities providing a £12 million loan to Angus and its subsidiaries, and Mercuria entering into commodity swaps with the project company.  Mercuria and Aleph Commodities also agreed to subscribe for shares in Angus over the life of the loan, and entered into revenue-sharing agreements with Angus and Saltfleetby Energy. Financial close for the transaction was achieved on 28 May 2021.
 
Herbert Smith Freehills’ London Finance team was led by partner Will Breeze (Picture), supported by senior associate James Foo and associate Letizia Corsi on the debt financing.  Corporate partner Laura Hulett, senior associate Shaun Williamson and associate Amrit Gill advised on the revenue-sharing agreements and the corporate aspects of the transaction.  Additional support was provided by partner Isaac Zailer on tax and partner Nick May and senior associate James Foo on hedging.
 
A separate team of partner Matthew Job and senior associate Edgar Monteiro advised Law Debenture, the security agent for the transaction.
 

Involved fees earner: William Breeze – Herbert Smith Freehills; Letizia Corsi – Herbert Smith Freehills; James Foo – Herbert Smith Freehills; Amrit Gill – Herbert Smith Freehills; Laura Hulett – Herbert Smith Freehills; Matthew Job – Herbert Smith Freehills; Nick May – Herbert Smith Freehills; Edgar Monteiro – Herbert Smith Freehills; Shaun Williamson – Herbert Smith Freehills; Isaac Zailer – Herbert Smith Freehills;

Law Firms: Herbert Smith Freehills;

Clients: Aleph Commodities Ltd ; Law Debenture; Mercuria Energy Group;

Author: Federica Tiefenthaler

Mercuria and Aleph Commodities’ £12 Million Debt and Equity Investment in Angus Energy plc

Herbert Smith Freehills has advised Mercuria on the deal.

The investment will support Angus’s development of the Saltfleetby gas field, one of a number of its UK onshore gas assets, co-owned with Saltfleetby Energy. It will also support Angus on its energy transition projects, including repurposing onshore hydrocarbon wells for geothermal energy production and storage.
 
The financing arrangements involve Mercuria and Aleph Commodities providing a £12 million loan to Angus and its subsidiaries, and Mercuria entering into commodity swaps with the project company.  Mercuria and Aleph Commodities also agreed to subscribe for shares in Angus over the life of the loan, and entered into revenue-sharing agreements with Angus and Saltfleetby Energy. Financial close for the transaction was achieved on 28 May 2021.
 
Herbert Smith Freehills’ London Finance team was led by partner Will Breeze (Picture), supported by senior associate James Foo and associate Letizia Corsi on the debt financing.  Corporate partner Laura Hulett, senior associate Shaun Williamson and associate Amrit Gill advised on the revenue-sharing agreements and the corporate aspects of the transaction.  Additional support was provided by partner Isaac Zailer on tax and partner Nick May and senior associate James Foo on hedging.
 
A separate team of partner Matthew Job and senior associate Edgar Monteiro advised Law Debenture, the security agent for the transaction.
 

Involved fees earner: William Breeze – Herbert Smith Freehills; Letizia Corsi – Herbert Smith Freehills; James Foo – Herbert Smith Freehills; Amrit Gill – Herbert Smith Freehills; Laura Hulett – Herbert Smith Freehills; Matthew Job – Herbert Smith Freehills; Nick May – Herbert Smith Freehills; Edgar Monteiro – Herbert Smith Freehills; Shaun Williamson – Herbert Smith Freehills; Isaac Zailer – Herbert Smith Freehills;

Law Firms: Herbert Smith Freehills;

Clients: Aleph Commodities Ltd ; Law Debenture; Mercuria Energy Group;

Author: Federica Tiefenthaler