Diversified Gas & Oil Closes on $500M, Five-Year Credit Facility
March 15 2018 - 4:29PM
Business Wire
KeyBank N.A. leads a syndicate of seven U.S.
banks to support the Company’s growth and operations
Diversified Gas & Oil PLC (AIM: DGOC) (“Diversified” and the
“Company”), a U.S.-based acquirer and operator of oil and gas
producing assets, has entered into a $500 million, five-year,
senior secured revolving credit facility (“Facility”) with a
syndicate of seven U.S. banks, led by KeyBank N.A. (“KeyBank”).
KeyBanc Capital Markets served as the Sole Lead Arranger and Sole
Bookrunner. Huntington Bank, Citizens Bank, BB&T, IBERIABANK,
CIT Bank and First Tennessee Bank committed to the Facility, which
will provide more liquidity and lower cost debt, with a new
syndicate of relationship banks.
As previously announced on February 21, 2018, the Facility
provides an initial borrowing limit of $140 million, which will
increase to $200 million following the anticipated closing later
this month of the acquisition of certain oil and gas leaseholds,
wells, working interests, licenses, related equipment and other
assets of CNX Gas Company Limited. Importantly, the Facility
significantly reduces the Company’s interest rate from
approximately 9.9 percent on amounts outstanding under the
Company’s previous facility agreement to approximately 4.5 percent
on those amounts under this Facility.
Diversified CEO Rusty Hutson says as the Company continues to
identify complementary opportunities to grow its portfolio of high
quality assets, reducing borrowing costs was a strategic objective,
and this closing marks another instance of Diversified delivering
results on stated objectives for the benefit of its
shareholders.
“The completion of the new credit facility is an important
milestone, and we are grateful for KeyBank’s leadership and the
support of an exceptional syndicate group participating in the
Facility,” said Hutson. “While firmly committed to maintaining a
strong balance sheet with low leverage, we are excited to have this
additional capital engine to fund our growth through the
responsible use of debt capital, which will reduce our cash
interest costs and favourably impact our stated dividend policy and
per share returns to our shareholders.”
Diversified’s signing of the new Facility from KeyBank follows
its February 19, 2018, $189 million equity placing, and represents
another step in the Company’s growth into a significant
consolidator of mature, conventional assets in the Appalachian
Basin.
About Diversified Gas & Oil
Diversified Gas & Oil (AIM: DGOC) acquires and operates oil-
and gas-producing assets in the Appalachian Basin of the United
States. Diversified employs a disciplined investment strategy to
acquire conventional and unconventional low-risk wells, enhance
operations efficiently and maximize profitability for its
shareholders. Founded in 2001, Diversified operates approximately
30,000 producing wells with the highest standards of safety,
governance and transparency. For more information, visit us online
at www.diversifiedgasandoil.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20180315006483/en/
Diversified Gas & Oil PLCNicole Wyatt,
205-588-2327nicole@markstein.co
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