Diversified Energy Co PLC - US onshore upstream and midstream natural gas assets - Closes USD365 million sustainability-linked asset backed securitisation linked to some of its Appalachian assets. Notes the assets were previously pledged as collateral under its revolving credit facility led by KeyBank National Association.
The securitisation note has a fixed coupon of 4.875%, maturing in November 2030.
Plans to use the asset backed securitisation proceeds to reduce its facility borrowings and create additional liquidity.
Chief Executive Rusty Hutson says: "We are pleased to close our third ABS note that demonstrates expanding investor support of a financing structure that fits well with the company's production-focused strategy. Fully amortising in less than nine years, the ABS structure remains consistent with our stated commitment to systematic debt reduction as we generate strong cash flow.
"The increased liquidity with this transaction positions us to further our pursuit of accretive, meaningfully-sized acquisitions without the need to issue new equity, all while maintaining our leverage targets."
Current stock price: 109.60 pence, up 2.4% on Monday
12-month change: down 12%
By Paul McGowan; paulmcgowan@alliancenews.com
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Diversified Energy (DEC)