(Alliance News) - Diversified Gas & Oil PLC on Wednesday said that it is evaluating to raise new capital via issue of asset backed securities.
The US based operator of natural gas assets in the Appalachian Basin said it is contemplating a securitization transaction where will form a special purpose vehicle, Diversified ABS LLC, that will issue non-recourse, asset backed securities in a private placement transaction.
The company expects to use the proceeds from any such offering to reduce its borrowings on its existing revolving credit facility and will collateralize the notes with a portion of its working interest from its existing asset portfolio.
The company, however, warned that there is no certainty that the issue of the securities will be completed.
Diversified Gas & Oil shares closed at 110.00 pence each in London on Wednesday, up 2.3%.
By Tapan Panchal; tapanpanchal@alliancenews.com
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