A&O Shearman advises banks on financing of ENGIE’s acquisition of UK Power Networks

A&O Shearman acted on the establishment of a GBP10.8bn bridge facility, arranged and underwritten by Bank of America and BNP Paribas, to finance ENGIE’s acquisition of UK Power Networks (UKPN), as well as on ENGIE’s capital increase of approximately EUR3bn carried out through an accelerated private placement with qualified investors.

This capital increase, which resulted in the issuance of 107,142,857 new shares, supports the maintenance of ENGIE’s strong investment-grade credit rating and forms part of the overall financing of the transaction.

With 71 TWh of electricity distributed annually to 8.5 million customers and a network spanning 192,000 kilometers, UKPN operates three electricity distribution licenses covering London, southeastern England, and eastern England. The company plays a key role in the development and modernization of the UK’s energy infrastructure.

The A&O Shearman team was led by Paris-based partner Julien Roux, assisted by counsel Tristan Jambu-Merlin and Quitterie d’Andoque on the financing aspects. Partner Olivier Thébault, Jade Billère-Mellet and Bénédicte Cheyrou-Lagrèze advised on the capital increase, together with partner Mathieu Vignon and Virginie Chatté on tax matters. Partner Diana Billik and Maggie Casteel also contributed on U.S. law aspects.