Chicago, Nov. 1 – Diversified Energy Co. plc announced closing a $460 million asset-based securitized financing transaction (//BBB+) with Oaktree Capital Management LP, according to a press release.
The coupon is 7.5%.
There is a fully-amortized maturity of September 2031 but a final legal maturity of November 2039.
The financing is linked to key performance indicators based on emissions reduction targets.
Bank of America Securities Inc. (left), Goldman Sachs & Co. LLC, Donovan Ventures LLC were the lead placement agents.
Proceeds will be used to repay all outstanding borrowings under the company’s sustainability-linked loan and for general corporate purposes.
This will result in current liquidity of approximately $300 million, inclusive of the financing of the ConocoPhillips acquisition announced on July 28.
Birmingham, Ala.-based Diversified Energy is an independent energy sector company engaged in the production, marketing and transportation of energy (primarily natural gas) with onshore U.S. upstream and midstream assets.
| Issuer: | Diversified Energy Co. plc
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| Amount: | $460 million
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| Issue: | Asset-backed securitization
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| Maturity: | November 2039
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| Placement agents: | Bank of America Securities Inc., Goldman Sachs & Co. LLC, Donovan Ventures LLC
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| Second party opinion: | Sustainable Fitch
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| Coupon: | 7.5%
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| Settlement date: | Oct. 27
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| Ratings: | Moody’s:
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| S&P:
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| Fitch: BBB+
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| Distribution: | Private placement
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