Lawyers from Latham & Watkins have advised Carlyle Global Credit on the financing in support of Turn/River Capital’s take-private acquisition of Tufin®. On April 6, Tufin and Turn/River Capital announced an agreement to take Tufin private; the transaction closed and funded on August 25, 2022. As part of the transaction, Tufin took advantage of Carlyle’s recently launched Decarbonization-Linked Financing Program. As a result, Tufin may access a certain reduction in the applicable interest rate if the Company meets applicable greenhouse gas emissions reduction targets contained in an Environmental, Social & Governance (ESG) schedule.
“We believe that Carlyle’s offering is a key innovative product in the private capital space,” said Latham & Watkins partner Betty Huber, who with the Latham team advised Carlyle Global Credit on the agreement. “In short, Carlyle has created a product that should help private companies reduce their cost of capital while playing an important role in the energy transition that will help meet climate change goals, using its ESG expertise to create and offer these groundbreaking private capital products and solutions.”
“Our decarbonization-linked financing program provides another avenue for Carlyle to support its borrowers in a decarbonizing world, and we believe it will help drive meaningful action on carbon emissions reductions. Credit markets have historically lacked the tools equity investors have to drive improvements on material ESG topics. We believe this strategy represents a new approach to tackling that challenge,” said Meg Starr, Global Head of Impact at Carlyle.
The Latham & Watkins team includes Betty Huber, the New York-based Global Co-Chair of Latham’s ESG Practice, and New York associate Karmpreet “Preeti” Grewal, along with Washington, D.C. partner Manu Gayatrinath and New York partner Stelios Saffos, advising on ESG matters, and a financing team led by Los Angeles partner Jason Bosworth and Bay Area partner Haim Zaltzman, with London partner Hendrik Smit, Houston finance partner Pamela Kellet, and Los Angeles associates Hai Pham, Yesenia Barberena, and Gina Han.