Derivatives

Holme Roberts & Owen LLP's derivatives group has extensive experience in the negotiation and documentation of a broad range of derivatives transactions. HRO represents oil and gas companies and utilities in the design and documentation of gas hedging programs, mining companies in the construction of metal and cost-side hedging programs, corporate and finance clients in hedging currency and interest rate exposure, and high net worth individuals in minimizing exposure to large securities holdings with costless collars and other equity derivative products.
Our practice includes all aspects of derivatives law. We counsel clients regarding U.S. regulation of over-the-counter derivatives. We have extensive experience in the negotiation of International Swaps and Derivatives Association (ISDA) master agreements and related margin and collateral agreements (under both New York and English law), with particular emphasis on issues of concern to corporate and individual counterparties. We work to ensure that interest rate and currency swap documentation is integrated with our clients' financing documents and adequately addresses inter-creditor issues. We coordinate with our tax practice and our clients' accountants to address the tax treatment of and impact of derivatives on the balance sheet, including U.S. Federal tax treatment of hedging proceeds and income recognition and deferral issues arising after the recent implementation of Financial Accounting Standard 133. We also team with our bankruptcy lawyers in workouts and bankruptcies involving substantial derivatives exposures.
Recent transactions of HRO's derivatives group include:
  • Negotiation of call option and warrant transactions in connection with $1.15 billion convertible note issuance;
  • Negotiation of call spread options in connection with € 500 million convertible note transaction;
  • Provided securities advice and filings for multiple forward contract and option transactions aggregating more than $2 billion for individual with extensive holdings in a single security;
  • $100 million margin loan and costless collar for Fortune 500 family with extensive holdings in a single security;
  • Assist hedge funds and hedge fund investors with respect to structuring, negotiating and documenting equity derivatives, including total return swaps, options linked to equity indices and leveraged equity derivative products;
  • Design, negotiation and documentation of multiple-counterparty precious metal, copper, fuel and currency hedging programs for domestic and foreign subsidiaries of an international mining company;
  • Over $3 billion in cross-currency and interest rate swaps to hedge loan and bond indebtedness of a major international broadband company, with a consortium of major international banks;
  • $145 million prepaid gold forward sale transaction for major international mining company;
  • Design and negotiation of $500 million natural gas hedging program for Western U.S. natural gas utility company;
  • Advice regarding the workout and successful restructuring of a multiple-counterparty metal and currency hedge book with an out of the money exposure of several hundred million dollars;
  • Advice to creditors and successful settlement of energy derivatives transactions in the Enron bankruptcy; and
  • Advising financial institutions with respect to various types of derivatives products offered to end-user customers.