Diversified Energy Co PLC on Monday said it raised $592 million in a recent round of refinancing.
On May 30, the US-focused natural gas producer closed on an asset backed securitisation refinancing to create the ABSVIII note.
After expenses, a total of $592 million was raised in a significantly oversubscribed transaction, with over $1.7 billion in orders, from eighteen different investors.
On March 19, the company announced plans to use an existing credit facility to fund a portion of its acquisition of working interests in certain assets from Oaktree Capital Management LP for an estimated price of $410 million.
Proceeds from the fundraise will be deployed for general corporate uses as well as to reduce the company’s outstanding borrowings from this credit facility.
Chief Executive Rusty Hutson said: ‘This transaction marks the eighth ABS since the start of our securitisation program in 2019 and signals the confidence in the diversified business model from the energy structured finance community as well as with the broader capital markets.’
Diversified Energy shares were up 0.2% to 1,177.00 pence each in London on Monday morning.
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