California Resources Corporation Forms $750 Million Joint Venture with Development Capital Resources

February 7, 2018

S&C represents California Resources Corporation (CRC) in connection with Development Capital Resources, LLC's (DCR) $750 million joint venture formed to operate certain of CRC's existing midstream infrastructure assets. CRC retained a significant ownership interest in the JV, alongside a $750 million preferred equity investment from a newly-formed vehicle managed by DCR and capitalized by funds managed by Ares Management, L.P. Concurrent with the joint venture investment, an Ares Management-led investor group also purchased $50 million of CRC common equity.

The S&C team on the transaction was led by Alison Ressler, along with Matthew Barnett, Scott Campbell, Anel Loubser and Oliver Lane. David Spitzer, along with Jonathan Rhein, advised on tax matters; John Estes and Andrew Dietderich, along with Daniel Biller, Moritz Raepple and John Grein, advised on financing matters; and Matthew Friestedt, along with Rebecca Coccaro and Joshua Green, advised on executive compensation and benefits matters.