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Cases & Deals

May 15, 2020

Next Wave Energy Partners and Energy Capital Partners close financing for Traveler Alkylate Facility


On May 15, 2020, our client Next Wave Energy Partners, LP (“Next Wave”), a portfolio company of Energy Capital Partners that is focused on the development, operation, acquisition and expansion of midstream and downstream assets in North America, achieved financial close on a project financing for its alkylate production facility. The facility, which will be the world’s first stand-alone alkylation complex, is being constructed by Pasadena Performance Products, LLC, a wholly-owned subsidiary of Next Wave, at its site near the Houston Ship Channel in Pasadena, Texas. Alkylate is a valuable gasoline blending component that is one of the cleanest petroleum products that can be produced.

The project financing of the facility includes equity financing, a construction and term debt facility, revolving credit facilities and letter of credit facilities. King & Spalding also represents Next Wave in connection with the development and construction of the facility.

This complex, high-value project financing transaction is an example of how the combination of King & Spalding’s market-leading project development and construction practice and our sophisticated project finance practice creates positive outcomes for our clients, providing world-class service across the full spectrum of their project development, construction and project financing needs. King & Spalding has worked with the Next Wave team since the inception of this project in 2018 with the structuring of commercial agreements for feedstock supply, alkylate offtake and utility supply, through an Engineering, Procurement and Construction (“EPC”) bid process and successful execution of an EPC contract. The closing of this project financing is the culmination of a multi-year effort to bring the project to fruition.