New York, NY. Representing Citigroup, Nixon Peabody LLP served as underwriter’s counsel on a project financing for a $1.8 billion nitrogen-based fertilizer production plant owned by Iowa Fertilizer Company LLC (IFC) and located in Lee County, Iowa. The financing involved the issuance of $1.2B of non-investment grade, tax-exempt bonds through the Iowa Finance Authority – this was the largest such financing in the tax-exempt market in U.S. history. This is also the first large-scale fertilizer production facility to be built in the United States in more than two decades.
“This was a project financing that faced a number of challenges” said Scott Singer, who coordinated much of the work for the Nixon Peabody legal team. “The fact that our team could address the securities, real estate, credit, environmental, and tax issues and work with a large working group to make the transaction happen on a tight schedule was testament to great teamwork and diverse talents throughout the firm.”
With the project now fully funded, the plant is expected to commence operations in the fourth quarter of 2015. The plant is expected to produce up to two million metric tons per year of urea ammonium nitrate, urea, ammonia, and diesel exhaust fluid and help reduce U.S. dependency on imported fertilizers.
In addition to Scott, the Nixon Peabody team consisted of attorneys from various offices and practice groups, including Ken Lind, Katie Baynes, Martha Anderson, Mitch Rapaport, Art Rosner, Lori Bowman, Mark Berman, Darren Miller, Ruth Leistensnider, Elizabeth Whittle, Bill Andrews, Bruce Baker, Barry Rothchild, Barry Carrigan, and Angelica Valencia.