Diversified Energy’s Second Securitized Financing

Kirkland & Ellis counseled Diversified Energy Company on the transaction.

Diversified Energy Company (LSE:DEC) announced the closing of a sustainability-linked asset backed securitization (ABS) of certain Barnett Shale assets in North Texas.

This financing represents the company’s second sustainability-linked ABS and fourth ABS since late 2019 demonstrating the increasing depth of investors for this product. The assets represent the company’s first ABS transaction involving unconventional shale assets outside of its Appalachia operating area.

Diversified will use the ABS proceeds to reduce its revolving credit facility borrowings resulting in liquidity of more than $400 million pro forma as of Dec. 31, 2021.

Donovan Ventures, LLC acted as sole structuring advisor and placement agent for the transaction.

Diversified Energy Company PLC is an independent energy company engaged in the production, marketing and transportation of primarily natural gas related to its synergistic US onshore upstream and midstream assets.

The Kirkland team was led by asset finance & securitization partner Jeff O’Connor and associate Tyler Bartholome; corporate partners Rahul Vashi and R.J. Malenfant and associate Rizwan Popatia; and included corporate partners John Kaercher and Shubi Arora; debt finance partner Lucas Spivey and associate Scott Reid; asset finance & securitization partner Joel Weinberger; derivatives partner Scott Gordon; and tax partner Thomas Evans and associate Weiwei Chen.

Involved fees earner: Shubi Arora – Kirkland & Ellis; Tyler Bartholome – Kirkland & Ellis; Weiwei Chen – Kirkland & Ellis; Thomas Evans – Kirkland & Ellis; Scott Gordon – Kirkland & Ellis; John Kaercher – Kirkland & Ellis; R.J. Malenfant – Kirkland & Ellis; Jeffrey O’Connor – Kirkland & Ellis; Rizwan Popatia – Kirkland & Ellis; Scott Reid – Kirkland & Ellis; Lucas Spivey – Kirkland & Ellis; Rahul Vashi – Kirkland & Ellis; Joel Weinberger – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Diversified Energy Company PLC;