Energy Finance Transactions

• Semester: Spring 2023
• Course ID: 296W
• Credit Hours: 2
• Unique: 29444

Description

Hands on practical business and legal concepts in financing oil and gas development and application of current market issues through negotiation and loan documentation. The course will provide historical context for the commercial and legal development of present day commercial bank lending to oil and gas producers illustrating the evolution of loan documentation between producers, private equity, and energy lenders. The tools and concepts taught in class lectures will be implemented by students in practice through negotiation and drafting of select loan provisions utilizing current real world example of a syndicated energy credit agreement and term sheet. Reading for the course has been selected to provide both the historical perspective and a technical analysis of common loan provisions. For the negotiation component, students will be divided into banker and producer teams serving to negotiate key provisions in a Term Sheet and Credit Agreement for an oil and gas loan through email and conference call interactions with their clients. The ‘clients’ will be Haynes and Boone, LLP energy finance lawyers who will be acting as bankers or producers, respectively. With client input, teams will negotiate and agree on the final Term Sheet and Credit Agreement. Some negotiations will be in class and the professors will lead a class discussion on the teams' work product. By the end of the course students will have negotiated high points in the term sheet and incorporated their negotiated changes into revisions to the model form credit agreement. The final work product will be the negotiated provisions of the Credit Agreement redlined against the form. In our final class, each group will discuss the final “deal” that was struck and three principal points of contention and how they drafted compromises in the documents. 

Students will be graded on class participation, drafting and negotiation exercises, a final work product, and a final exam (short answer).