Oaktree Capital Management’s Acquisition of Rail Infrastructure Assets

Kirkland & Ellis LLP served as lead transaction counsel to Oaktree Capital Management in the transaction.

Oaktree Capital Management, L.P., in partnership with Watco Companies, LLC, a transportation service company, executed the acquisition of Dow Inc.’s (NYSE: DOW) rail infrastructure assets and related equipment at six major North American sites.

As part of the transaction, Watco will enter into a long-term service agreement to provide rail services at Dow’s flagship locations in Freeport and Seadrift, Texas; St. Charles and Plaquemine, Louisiana; and Fort Saskatchewan and Prentiss in Alberta, Canada. Oaktree has been an investor in Watco since December 2018.

Watco is a transportation service company that owns and operates a diverse network of short line railroads, terminals, ports, and mechanical shops across North America and Australia.

Oaktree is a leader among global investment managers specializing in alternative investments, with $113 billion in assets under management as of March 31, 2020. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities.

The Kirkland team advising Oaktree was led by transactional partners Michael Brueck (Pictuer) and Patrick Jacobs, real estate partner Roberto Miceli and debt finance partners Roald Nashi and Rustin Brown and transactional associates Adarsh Varghese and Marc Holloway, and included transactional partner Hamed Meshki and transactional associate Sara Campbell, tax partners Mike Beinus and Meredith Levy, investment funds partners Erica Berthou and Carrie VanFleet, technology & IP transactions partners Matthew Lovell and Daisy Darvall and environmental partner Sara Michaelchuck Webber.

Involved fees earner: Michael Beinus – Kirkland & Ellis; Erica Berthou – Kirkland & Ellis; Rustin Brown – Kirkland & Ellis; Michael Brueck – Kirkland & Ellis; Sara Campbell – Kirkland & Ellis; Daisy Darvall – Kirkland & Ellis; Marc Holloway – Kirkland & Ellis; Patrick Jacobs – Kirkland & Ellis; Meredith Levy – Kirkland & Ellis; Matthew Lovell – Kirkland & Ellis; Hamed Meshki – Kirkland & Ellis; Roberto Miceli – Kirkland & Ellis; Sara Michaelchuck Webber – Kirkland & Ellis; Roald Nashi – Kirkland & Ellis; Carrie VanFleet – Kirkland & Ellis; Adarsh Varghese – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Oaktree Capital Management;

Author: Ambrogio Visconti