24th Apr 2019 13:09
LONDON (Alliance News) - Diversified Gas & Oil PLC said on Wednesday it has enlarged its credit facility borrowing base to USD950 million from USD725 million, following its acquisition of Appalachian gas producing assets.
The Appalachian basin-focused oil & gas company said that its bank syndicate, led by KeyBank National Association has been increased to 14 banks from 12, with the addition of Deutsche National Bank and BBVA Compass.
In addition, Diversified has negotiated on a 25 basis points reduction to each tier of the facility's pricing grid, lowering the spread by around 10%. The current pricing grid for amounts drawn on its USD1.5 billion facility is now LIBOR plus 2.0% to 3.0% depending on its use.
Diverisfied's current liquidity is now USD330 million, remaining available to fund organic development and further acquisitions.
"I would like to express my gratitude to our banking group for their continued commitment to Diversified's vision. We are thrilled to welcome RBC, DNB and BBVA Compass to the family of world-class banks participating in our facility," said Chief Executive Rusty Hutson.
"It's hard to believe that the credit facility we established in March 2018 with a borrowing base of USD200 million has grown nearly 500% in just one year to its current USD950 million level, which is a reflection of the high quality, long-life reserves that underpin our assets," Hutson added.
Shares in Diversified Gas & Oil were up 0.4% at 122.00 pence on Wednesday.
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