Kirkland and Latham guide Apollo on record £4.5bn private credit deal for UK nuclear plant

Kirkland & Ellis, Latham & Watkins and Hogan Lovells have advised on a landmark financing deal that will see the private credit arm of private capital giant Apollo extend £4.5 billion to French state-owned energy group EDF.

The deal is the biggest ever sterling-denominated private credit transaction, according to Apollo, and underscores the growing influence of private credit in sectors once dominated by traditional banks and public bond markets.

The deal

The money is being raised as a private placement under EDF's £50 billion medium-term note programme, with Apollo’s private credit arm set to buy up to £4.5 billion of fixed-rate notes in three annual tranches of £1.5 billion each.

The debt is unsecured and carries an interest rate just below 7%, according to Financial Times sources. Each tranche has a maximum maturity of 12 years.

Though the funds will finance a range of projects across the UK, the main focus is expected to be Hinkley Point C, the long-delayed and much over-budget nuclear power plant in South West England.

Advising

A team of US and Paris-based Kirkland partners advised Apollo, led by debt finance partners Mary Kogut (Houston) and Kalish Mullen (Paris).

Latham acted for Apollo-managed affiliates, funds and strategic accounts, led by New York corporate partner Gary Boss and London/Paris-based capital markets partner Roberto Reyes Gaskin.

Hogan Lovells advised EDF.