Elite UK duo head up latest rights issue as Spanish utility giant moves to repay debts in wake of €19bn buyout

Freshfields Bruckhaus Deringer and Linklaters have landed lead roles on Gas Natural's €3.5bn (£3.2bn) rights issue.

Freshfields has advised long-standing client Gas Natural, fielding a team led by Madrid corporate partner Armando Albarran and London corporate partners Don Guiney (US law) and Monica McConville.

Linklaters advised a group of underwriting banks including Banco Santander, Barclays BNP Paribas, Societe Generale and UBS. The firm's team was led by capital markets partners Inigo Berricano in Madrid and Luis Roth in Paris.

Proceeds of the share issue will be used to help repay some of the debt used for the Spanish utility giant's acquisition of rival energy company Union Fenosa, announced last year.

Freshfields' Albarran also advised Gas Natural on the €19bn (£17bn) acquisition, which is awaiting regulatory approval. That deal saw Allen & Overy (A&O), rather than Linklaters, advising the lending banks, which included several of those now underwriting the rights issue. A&O put forward a team headed by London leveraged finance partner Ian Borman.

Freshfields has established itself as a preferred adviser to Gas Natural, with the company instructing the UK law firm on a number of occasions – most notably its failed multibillion-pound bid for utility company Endesa in 2005.

Given the difficult credit markets, streams of companies have this year moved to tap investors via rights issues in order to cut their debt burdens. The deals have generated plenty of work for legal advisers, with banks and property companies in particular pursuing the issues.

Notable deals in recent months include rights issues by HSBC and British Land, which secured work for firms including Linklaters, Freshfields and Norton Rose.