Diversified Energy Company PLC (LSE:DEC, NYSE:DEC, FRA:DG20) announced that its wholly owned subsidiary, Diversified Gas & Oil Corporation, has placed a $200 million tap issue of its senior secured bonds due April 2029.
The 'tap' increases the total amount outstanding under the 2029 secured bonds to $500 million.
Diversified said it intends to use the net proceeds from the tap issue for general corporate purposes.
DNB Carnegie, part of DNB Bank ASA, acted as sole bookrunner. The company said the tap issue bonds will be issued under a separate ISIN until a prospectus has been approved, and the tap issue bonds will then be merged with the existing secured bonds under the 2029 secured bonds.
At the backend of last year, DEC raised its full-year targets following a record third quarter that saw profits, cash flow, and shareholder returns all surge. Free cash flow of $144 million was generated, helped by $74 million of proceeds from asset sales under a portfolio optimisation programme.
DEC also completed the previously announced acquisition of Canvas Energy, adding operated producing assets and acreage positions in Oklahoma.