With a history as one of the leading firms in mortgage-backed securities, Orrick Herrington & Sutcliffe has suffered some disruption following the meltdown of the subprime mortgage market. The firm recently experienced the loss of several of its leading lawyers; David Katz and Michael Petronio went to Willkie Farr & Gallagher in July 2010, while James Croke left for Chapman and Cutler in January 2011....
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With a history as one of the leading firms in mortgage-backed securities, Orrick Herrington & Sutcliffe has suffered some disruption following the meltdown of the subprime mortgage market. The firm recently experienced the loss of several of its leading lawyers; David Katz and Michael Petronio went to Willkie Farr & Gallagher in July 2010, while James Croke left for Chapman and Cutler in January 2011. However, rivals remain confident that it will recover from the difficult conditions. One peer speculates that the issues "may be just a blip in time," adding, "They have done a lot of stuff - they could probably adapt."
The firm continues to attract praise from clients and competitors, particularly in regard to its regulatory work. One client commends the firm for being "very well-connected in terms of communicating on proposed changes and discussing them with regulators." Partner Michael Mitchell was involved in drafting the American Securitisation Forum's industry comment letter on the SEC's 2004 proposals concerning Regulation AB.
One peer credits Mitchell, a former special counsel with the Securities and Exchange Commission, with making a "phenomenal" contribution to discussions on new legislation. "He has a way of taking really stupid things that other people say and making them sound intelligent," says the competitor. "He's just dynamite at that. I am really impressed by him."
In a deal which closed in March 2011, the firm advised the Redwood Trust as sponsor on a $290 million RMBS offering – the first public offering of private-label mortgage-backed securities that year. The firm also hosts regular breakfast briefings on various topics including a recent series on Dodd-Frank, which was attended by more than 150 companies.
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Orrick Herrington & Sutcliffe counsels clients in a wide range of project finance matters and has particular strength in energy project development and finance, governmental energy funding and public-private partnerships. In March 2011, partner Sean Maloney joined the firm from Kirkland & Ellis....
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Orrick Herrington & Sutcliffe counsels clients in a wide range of project finance matters and has particular strength in energy project development and finance, governmental energy funding and public-private partnerships. In March 2011, partner Sean Maloney joined the firm from Kirkland & Ellis. The same month, partner Stuart McAlphine left to go to Mayer Brown.
The firm receives praise from both clients and competitors. "They have a good group," says one rival. A client of the firm says, "Their experience and knowledge, particularly in the products I manage, is probably the best in the industry, and I think the prices are fair."
The firm recently represented BrightSource Energy in developing a $2.2 billion solar power scheme in the California desert, known as the Ivanpah project. Orrick advised BrightSource on issues including raising $580 million for the project and debt financing efforts. The transaction, which closed in April 2011, is the largest financing of a solar project to date, using the largest DOE loan guarantee yet issued.
Other notable work includes advising clients Fluor and Macquarie Capital on a public-private partnership (PPP) concession for the construction, financing and operation of a commuter rail network for the Denver metropolitan area. The scheme, known as Project Eagle, is part of a 12-year, multibillion dollar transit program for the area and is the first US rail project to utilise a public-private partnership structure. It closed in August 2010 and was named 2010 Americas Transport Deal of the Year by Euromoney's Project Finance magazine.
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Orrick Herrington & Sutcliffe "has some first-class workout people", according to one competitor. Partner Marc Levinson is described by peers as "very capable" and "first class, a very smart guy"....
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Orrick Herrington & Sutcliffe "has some first-class workout people", according to one competitor. Partner Marc Levinson is described by peers as "very capable" and "first class, a very smart guy". In February 2011, the firm added partner Philippe Hameau from Dewey & LeBoeuf to its team.
In a case which closed in December 2010, the firm represented The Bank of Nova Scotia as administrative agent in the bankruptcy case and Canadian CCAA (Companies' Creditors Arrangement Act) proceeding of newsprint manufacturer AbitibiBowater and its US and Canadian affiliates. The matter involved a $163 million financing facility, although the total debt of the company exceeds $5 billion. AbitibiBowater paid the Canadian lenders in full, with interest.
In a $100 million ongoing matter, Orrick is representing East West Bank as agent for a group of Asian-oriented banks, which are the secured lenders in the Chapter 11 case of Aviza Technology. A sale of some of the assets to Sumitomo Precision Products for $55 million closed in 2009. Other asset sales have closed, and more are pending.
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