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The Markets
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The Markets
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Oil & Gas

Diversified Energy closes $610mln refinancing; 'important positive' says broker

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has closed a $610 million (£479 million) asset-backed securitisation refinancing.

Net proceeds of $592 million will repay ABSIII and ABSV notes and reduce borrowings under the revolving credit facility.

The transaction was oversubscribed with $1.7 billion in orders from 18 investors.

Sustainable Fitch confirmed the note's alignment with ICMA's sustainability-linked bond principles, supporting Diversified's sustainability strategy.

"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," said chief executive Rusty Hutson, Jr.

He added: "The transaction was well received by both new and existing investors delivering high demand from the largest order book for an oil and gas securitisation."

The shares were rangebound in afternoon trading at 1,179p.

Peel Hunt, which rates the stock 'buy' up to 3,000p, said of the refinancing: "This is an important and positive announcement from the company."

---Adds share price and Peel Hunt comment---

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