Simpson Thacher is Representing JPMorgan in Financings Related to its $1.5 Trillion Security and Resilience Initiative
Simpson Thacher is representing JPMorgan Chase Bank, N.A. (“JPMorgan”) in providing $2.349 billion of debt financing (the “Financing”) to Crucible Metals, LLC, a subsidiary of Korea Zinc Company, Ltd (“KZ”), in support of a $7.4 billion advanced critical minerals and metals project in Tennessee (the “Project”). The U.S. government has also agreed to provide $2.349 billion of debt financing for the Project. Simpson Thacher also represented an affiliate of JPMorgan as placement agent to help place a portion of the $2.150 billion of equity financing for the Project through a newly formed joint venture, which would be controlled by the U.S. government and other U.S.-based strategic investors. The Project will also be supported by up to $210 million in direct funding from the U.S. Commerce Department under the CHIPS and Science Act.
The Financing is part of JPMorgan’s $1.5 trillion Security and Resiliency Initiative to facilitate, finance and invest in industries critical to national economic security and resiliency. KZ is a Korea-based non-ferrous metal smelter that produces several varieties of rare metals and is the world’s largest non-ferrous metal smelter. At scale, the Project is expected to produce over 540,000 tons of finished products.
The Simpson Thacher team included Erland Modesto, Brandon Barton, Charlie Carroll, Sophie Skinner and Michael O’Rear (Credit); David Azarkh, Lia Toback and Jessica Ryan (Capital Markets); and Adam Arikat and Michael Mann (Tax).