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Firm Helps Mississippi Gas Authority Consummate Third Natural Gas Prepayment Deal

Lawyers from Miller, Balis & O'Neil, P.C. assisted the Municipal Gas Authority of Mississippi (MGAM) as Special Gas Counsel in consummating one of the largest non-taxable natural gas prepayment transactions ever. MGAM issued nearly $425 million in debt to acquire over 87,000,000 MMBtus of natural gas over ten years.

The seller is BP Energy Company. The prepayment structure ensures a reasonable cost of natural gas supplies to MGAM's participating municipalities throughout the State of Mississippi. The natural gas purchase was funded through Variable Rate Special Obligation Bonds issued by the Mississippi Development Bank.

The transaction marks the third natural gas prepayment in the past seven years in which MBO has assisted MGAM in securing the natural gas needs of its members. The MBO team consisted of Jim Choukas-Bradley, Craig Silverstein, and Linda Browning.