Diversified Energy Closes Market Leading Securitized Financing

Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) announced on June 3, 2024, that it has closed an asset-backed securitization (ABS) refinancing on May 30, 2024. This transaction, creating the ABSVIII note, will help repay previous ABSIII and ABSV notes and reduce the company's outstanding borrowings.

With over $1.7 billion in orders from 18 unique investors, the $610 million ABSVIII note comes with a blended fixed coupon of 7.28% and an expected maturity of March 2033. Investment-grade ratings were assigned by Fitch Ratings, Inc., with Class A-1 receiving an A rating.

The securitization reflects Diversified’s alignment with sustainability principles as confirmed by Sustainable Fitch. CEO Rusty Hutson, Jr. emphasized the high investor confidence and the firm's ability to deliver reliable production and consistent cash flows.