Diversified Energy Company has successfully closed an asset-backed securitisation (ABS) refinancing, creating the ABS X note with legal guidance from Kirkland & Ellis. This strategic move strengthens the company’s financial position by consolidating and repaying prior ABS structures and a term loan while leveraging newly acquired assets. Investors can expect enhanced margins, improved cash flows, and a bolstered balance sheet as a result of this transaction.
Kirkland & Ellis played a key role in structuring the deal, working closely with Diversified’s Chief Legal Officer, Ben Sullivan. The proceeds from this refinancing will be used to reduce outstanding borrowings and support general corporate initiatives, positioning Diversified Energy for sustained growth. Additionally, the ABS transaction benefits from an optimised hedging strategy, further improving financial efficiency.
The legal team from Kirkland & Ellis included experts across structured finance, real asset transactions, corporate law, debt finance, derivatives, tax, investment funds, employee benefits, and international trade. Their collaboration ensured a smooth transaction, reinforcing Diversified Energy’s long-term strategic objectives.
Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.
