IFLR 1000
The Guide to the World's Leading Financial Law Firms

This year, in the capital markets, Musat & Asociatii drop a place into the second tier. There is little doubt that Musat & Asociatii is a known firm that has prominent standing by virtue of its history. However, competitors have noted its decreased visibility of late. "They're not very much active on the capital markets side," says one partner. "I'm not very aware of Musat. They did win the mandate to represent the state for Trans electrica."

Clients, on the other hand, have been thoroughly satisfied by the firm's performance. "Working with Musat & Asociatii has constantly been very satisfying; they know our business very well, have great command of the legal matters and understand perfectly our requirements," says one client, adding: "They are a top law firm in Romania, having been involved in major transactions over the years, they have gained excellent commercial skills and our experience with them has always been flawless, so their contribution is not only appreciated, but also represents a good value for money,"

This year, as alluded to earlier, the firm is advising the Ministry of Economy and the Office for state ownership and privatisation in industry (OPSPI) in regard to the secondary public offering on the Bucharest Stock Exchange for the purposes of the sale by the Romanian State of 15% of the share held in Transelectrica. To this end, at €50 million, Musat & Asociatii is providing a comprehensive service to the Romanian State, including selecting the intermediary, structuring and implementation of the sale process, as well as providing legal advice in all matters pertinent to the secondary offering. Furthermore, the firm is Advising Rompetrol Group in connection with the €90 million acquisition of the remaining free float of Rompetrol Rafinare, so far the most successful mandatory public offer performed on the Bucharest Stock Exchange. The firm is also providing legal advice in all matters pertaining to the mandatory public offering of Rompetrol Well Services.

Catalin Baiculescu has been the subject of praise, with one client describing him as: "A very competent lawyer, extremely professional and incredibly analytic, providing us first-rate legal advice."

Musat & Asociatii is a Romanian brand, which has developed itself a formidable reputation on the market. It has been the source for spin-offs and low cost alternatives and this is testament to the space the firm has traditionally occupied. However, on the banking side, competitors are starting to query the dominance of the firm on the legal landscape. "Musat organise themselves differently. They have a different setup. Some do finance but none specialise in working for banks," says one partner, adding: "They don't organise on the cross-border basis. We haven't seen them in banking for a while." Another partner says: "I'm unsure about Musat. I don't know if they have a specialised team and they're not on the panel of so many banks. They are one of the top three law firms, so it's a tradition that they're there."

Nevertheless, in spite of reservations held by peers of the firm, clients have been in no doubt about the quality of the service provided. "Musat & Asociatii is one of the best Romanian law firms we have had the chance to collaborate with. They possess an impressive knowledge of the legal sector, being very practical and dedicated. I've noticed their business awareness, being able to combine legal matters with business related issues," says one client. Another says: "We rate our overall experience with the firm as excellent, as we have been working with them for more than ten years and they have been very professional every time we have requested their advice. They stand out for the full spectrum of legal services they are providing at the highest level".

Moreover, clients have been full of praise for Catalin Baiculescu and Miruna Suciu. "We must single out Catalin Baiculescu, who is one of the most talented lawyers on the local market. Straight-forward and skilled, Catalin has an original approach and gives us both innovative and practical solutions on the most sensitive legal issues," says one client, adding: "We have worked with Miruna Suciu, a hands-on lawyer and natural-born negotiator, with a remarkable expertise both in the finance sector, as well as in the capital markets area.

This year the firm advised the European Investment Fund in connection with a "First Loss Portfolio Guarantee" granted to BCR and Raiffeisen Bank. This was connected to an agreed portfolio loan volume of €315 million in the context of the operation of Jeremie (Joint European Resources for Micro to Medium Enterprises). Furthermore, the firm advised Gabriel Resources with regard to the negotiation of a complex credit arrangement with several lenders. Exceeding €1 billion, this is aimed at financing the mining investment project for the exploration and exploitation of the biggest gold and silver mining site in Europe: Rosia Montana (in Romania).

Musat & Asociatii is a trusted Romanian brand and M&A is when the firm really comes into its element. In this edition, the firm retains its top tier position as it continues to attract the high value deals. Nevertheless, while many peers refrain from questioning the historically acquired status of the firm, some have cast doubt on its prominent standing. "With privatisation and M&A, Musat is good," says one partner, with another stating in contrast: "They're not so strong anymore. They lost an important team and two very important clients. This is a blow for the firm and they're not strong enough for tier one." "They're good in Romanian matters but not so good in the international M&A environment," yet another competitor says.

On the other hand, clients express their satisfaction with the performance of the firm and the story here is a lot more stable. "Musat was very hard working. They're tough negotiators," one client says, adding: "They were very knowledgeable, able and innovative. Even in deadlocks they called me personally and wanted to make sure we were clear on the deal." Another client says: "Musat & Asociatii exceeded our expectations every time we requested their advice. They are one of the few full service law firms in Romania, thus having the capability and knowledge to provide integrated legal advice."

Additionally, Catalin Baiculescu has been subject to praise."[He] has a strong technical expertise and is also a very bright M&A lawyer, vigilant and experienced. He knows that the devil stays in details and pays much attention to every particularity of the legal issues. Our projects wouldn't be finalised without him, as he isn't just an excellent lawyer, but makes sure that he understands what we really want and the specific of our business."

In a tough market, the firm is involved in some significant transactions. It advised the Rompetrol Group in regard to the debt-for-equity swap of its historical debt to the Romanian State in an aggregate value of €570 million. Furthermore, the firm advised Alka Pro, in connection to the sale of its seeds and nuts activity (Nutline) to Intersnack Group and advised RE Power with respect to the €15.5 million acquisition of Elcomex.

Musat & Asociatii has had an active year in project finance and retains its place in the top rung. This is so, despite some reservations from market commentators. Concerns have been raised that lawyers of the firm, by want of training, are not specialised enough for "true" project finance and as a result are short of the requisite knowledge. Nevertheless, others hold differing opinions. "I know in project finance, Musat I trust," says one peer. Furthermore, Catalin Baiculescu has been noted for his proficiency. "Catalin is good at Musat in project finance and M&A," says another partner.

Furthermore, the firm's client orientation has been successful in building lasting relationships. "We have a long history of over ten years in working with Musat & Asociatii. We decided to choose them due to their high reputation as a full service law firm, with a strong portfolio of complex projects, and we have continued to collaborate since then as they have been true to their name. We are a good team together so we will continue to collaborate in the future," says one satisfied client.

The firm continues to attract big-ticket mandates and is currently advising Enel on the privatisation project anticipated at €4 billion. This was initiated by the Romanian Ministry of Economy and Finance for the development of unit three and unit four of Cernavoda Nuclear Power Plant. Additionally, in a greenfield project worth €1.3 billion, the firm is advising the Ministry of Economy and Hidroelectrica, as part of an international consortium, in connection with the selection of investors for the construction of the Tarnita-Lapustesti Hydropower Plant. The firm also advised Gabriel Resources, with regard to the financing and construction of resettlement sites accommodating the local community affected by the Rosia Montana mining project. The resettlement process involved financing and building two resettlement sites in Alba Iulia (La Recea area) and Rosia Montana (Piatra Alba area) and included related infrastructure, utilities networks, public and private buildings.