Diversified Energy Company PLC (LON/NYSE:DEC) has announced that on May 30, 2024, the Company closed on an asset backed securitization refinancing, creating the ABSVIII note. Diversified will use the proceeds from the Transaction to repay the outstanding principal of the previously issued ABSIII and ABSV notes, retiring those notes from the Company’s outstanding debt. The additional proceeds from the Transaction will be used to reduce outstanding borrowings under the Company’s revolving credit facility and for general corporate purposes. As previously announced on March 19, 2024, the Company intends to fund a portion of the acquisition of the working interests from Oaktree Capital Management using the Company’s revolving credit facility
The Transaction is backed by collateral securing the ABSIII and ABSV notes representing working interest in Proved Developed Producing (“PDP”) wells. The Transaction was significantly oversubscribed with over $1.7 billion in orders from a broad group of 18 unique investors.
