JPMorgan Provides $2.349 Billion Financing for Tennessee Critical Minerals Project Under $1.5 Trillion Security and Resiliency Initiative

Simpson Thacher represented JPMorgan Chase Bank, N.A. ("JPMorgan") and an affiliate, assisting JPMorgan in providing debt financing to Crucible Metals, LLC, a subsidiary of Korea Zinc Company, Ltd ("KZ"), and in the placement of equity for the Project. The firm advised JPMorgan in providing $2.349 billion of debt financing (the "Financing") to Crucible Metals to support a $7.4 billion advanced critical minerals and metals project in Tennessee (the "Project"). The U.S. government has agreed to provide a matching $2.349 billion of debt financing for the Project. The Project will also be supported by up to $210 million in direct funding from the U.S. Commerce Department under the CHIPS and Science Act. Simpson Thacher additionally represented an affiliate of JPMorgan as placement agent to assist in placing a portion of the $2.150 billion of equity financing for the Project through a newly formed joint venture that would be controlled by the U.S. government alongside other U.S.-based strategic investors. The Financing is part of JPMorgan's $1.5 trillion Security and Resiliency Initiative to facilitate, finance and invest in industries critical to national economic security and resiliency. KZ is a Korea-based non-ferrous metal smelter and is the world's largest non-ferrous metal smelter; at scale the Project is expected to produce over 540,000 tons of finished products. Simpson Thacher represented JPMorgan Chase Bank, N.A. and an affiliate with a team composed by: Erland Modesto, Brandon Barton, Charlie Carroll, Sophie Skinner and Michael O’Rear (Credit); David Azarkh, Lia Toback and Jessica Ryan (Capital Markets); and Adam Arikat and Michael Mann (Tax).

JPMorgan Provides $2.349 Billion Financing for Tennessee Critical Minerals Project Under $1.5 Trillion Security and Resiliency Initiative

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