18th Aug 2021 09:20
(Alliance News) - Diversified Energy Co PLC on Wednesday said it has expanded a loan facility and sealed a deal to buy into upstream assets in Louisiana and Texas.
The onshore upstream and midstream natural gas assets said the loan facility deal boosts its borrowing base to USD625 million from USD425 million.
It also extends the maturity by two years to August 2025 and brings in "several new leading financial institutions" as lenders.
The facility carries an interest rate in the range of Libor plus 2.75% and Libor plus 3.75%, contingent on how much of the loan is drawn.
"Following this amendment, DEC's enlarged borrowing base and enhanced debt capacity continue to support the company's growth opportunities while preserving a healthy balance sheet and positioning the company to use its financing capacity to fund additional growth," Diversified Energy said.
Diversified on Wednesday also said it sealed a co-investment deal, alongside Oaktree Capital Management LLP, to acquire the Cotton Valley and Haynesville upstream assets.
The deal with sellers Tanos Energy Holdings III LLC, announced in July, is worth USD308 million. Diversified paid USD154 million and it has just over a 51% stake, with Oaktree holding the remainder.
Diversified shares were 0.8% lower at 105.00 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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