US firm scoops work for broadcaster's replacement credit facility

Weil Gotshal & Manges' London office has helped secure a new £750m credit arrangement for British Sky Broadcasting (BSkyB).

The US-based law firm advised the broadcaster on the syndicated credit facility, which is available for drawing from 30 July 2010, replacing an existing £1bn facility.

Finance partner Stuart Hills headed the Weil team, assisted by tax partner Sarah Priestly and finance associates Andrew Bishop and Zillah Whittaker.

BSkyB first asked Weil to pitch for work almost 18 months ago and the firm has subsequently carried out a range of banking work for the client.

Hills joined Weil in April last year to help build the firm's City finance practice. Weil has been trying to grow the group since bringing in a private equity team from Lovells led by Marco Compagnoni in 2006.

Commenting on the financing Hills told Legal Week: "The deal shows the growing acceptance of Weil, and firms like us, being recognised as English law advisers to the major UK corporates and not just as a US firm in London."

Allen & Overy (A&O) advised a syndicate of 11 banks on the deal. Banking partner David Campbell led the team assisted by senior associate Darren Hanwell. The banks include Banco Santander, Bank of China, Credit Suisse, Deutsche Bank and Royal Bank of Scotland.

While A&O advised the banks on this deal BSkyB has traditionally used the magic circle firm for much of its corporate work. The firm has previously advised on matters including talks with Tiscali last year to take on Tiscali's UK assets. A&O also advised the broadcaster on its defence of claims from Virgin Media that it flouted competition laws by taking a 17.9% stake in ITV in 2006.