Caliche Development Partners Closes $150 Million Capital Partnership with Orion Energy Partners

December 11, 2020

Willkie represented Caliche Development Partners in the closing of a multi-draw, senior secured debt facility with Orion Energy Partners.

On December 2, Willkie client Caliche Development Partners announced the closing of a multi-draw, senior secured debt facility with Orion Energy Partners to support the continued build-out of its subsurface salt cavern storage complex in Beaumont, Texas, and the commissioning of a new 3 million barrel cavern for the storage of industrial gases under a long-term agreement. The cavern and accompanying terminal facility are slated to go into service during summer 2021. Completion of the new cavern will increase Caliche's total operational storage capacity to 8 million barrels and usher in the next phase of the company's efforts to support the region's transition from a traditional energy infrastructure hub in a low emissions future.

Caliche, a portfolio company of Energy Spectrum Partners VII LP, acquired the partially completed storage complex in 2017 and currently owns and operates a 600-million-pound capacity ethylene storage cavern supporting multiple customers.

Caliche Development Partners is a Houston, Texas-based company focused on the acquisition, development, construction, ownership, and operation of subsurface gas and liquid storage assets in North America, with a primary focus on the U.S. Gulf Coast.

Orion Energy Partners is a private capital partner to lower/middle market energy infrastructure and related companies, primarily in North America, with assets under management in excess of $2 billion.

The Willkie deal team was led by partners Archie Fallon and Jorge Kamine.