Simpson Thacher represented Viridor, a leading U.K. recycling, renewable energy and waste management company controlled by funds advised by KKR, in connection with financial close of the Thameside Energy Recovery Facility (“Thameside ERF”) at Tilbury Docks, East London. The transaction involved the acquisition of the remaining 80% stake in the project company from ESB Asset Development UK Limited and the arrangement of project financing facilities totalling approximately £395 million for the construction and operation of the Thameside ERF. The final acquisition and financing closed on 25 November 2024. This was the first KKR-sponsored project financing executed by Simpson Thacher in Europe on hybrid project finance and leveraged finance terms.
Thameside ERF is expected to reach commercial operation in 2028 and will be able to process up to 350,000 tonnes of residual waste annually, generating renewable energy sufficient to power the equivalent of 93,000 homes. This milestone marks the next step in the development of Viridor’s latest energy from waste facility, increasing its fleet to 13 state-of-the art ERFs across the UK.
The Simpson Thacher team included Amy Mahon, Jenny Leung, Tory Hansen and Robert Williams (M&A); Claire Williams, Li Lin, Lauren Bugler, Jennifer Falconer Hall and Ruairi McGill (Credit); Sarah Lindley and Alex Ladyman (Tax); and Etienne Renaudeau and Luke Cowdell (Antitrust).