Diversified Gas lifts credit facility borrowing base to $950 million

By Sarah Lizee

Olympia, Wash., April 24 – Diversified Gas & Oil plc said it expanded the borrowing base under its $1.5 billion facility by 31% to $950 million from $725 million.

Following the company's recent acquisition of the Appalachian gas producing assets from HG Energy II Appalachian, LLC, Diversified's bank syndicate, led by KeyBank NA, was enlarged, according to an announcement.

Funded in part by its senior secured revolver first agreed to in March 2018, Diversified has acquired more than $1.3 billion of long-life, low-decline gas and oil producing assets in the Appalachian Basin contributing to pro-forma daily net production of more than 90,000 barrels of oil equivalent per day.

The bank syndicate was increased to 14 from 12 and now includes Deutsche National Bank and BBVA Compass. Royal Bank of Canada also joined the bank syndicate at the company's previous redetermination in December 2018.

In addition, the company negotiated a 25-basis point reduction to each tier of the facility’s pricing grid, lowering the spread by nearly 10%. The current pricing grid for amounts drawn on its facility is Libor plus 200 bps to 300 bps, depending on use.

Diversified Gas & Oil is a Birmingham, Ala.-based producing oil company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.