$900 Million Prepaid Natural Gas Transaction

Represented Morgan Stanley Capital Group Inc. (“MSCG”) in its role as gas supplier, receivables purchaser, interest rate swap provider and investment contract provider and Morgan Stanley in its role as guarantor of MSCG’s obligations in a prepaid natural gas transaction financed with more than $900 million in municipal bonds issued by Public Energy Authority of Kentucky. This transaction required an intersection of disciplines between physical commodities, financial derivatives and tax law.