Loan & DebtMay 19, 2026, 08:36 AM
Diversified Energy Issues $850M ABS XII Notes to Refinance Debt
AI Summary
Diversified Energy Company's indirect subsidiary, DP Red River LLC, issued $850 million in fixed-rate asset-backed securities (ABS XII Notes) in a private offering. The issuance comprised $590 million of 6.016% Class A-1 Notes and $260 million of 6.910% Class A-2 Notes, both maturing in 2046 with an expected repayment date in May 2031. The net proceeds were primarily used to fully redeem existing ABS Maverick Notes and ABS VI Notes, which carried higher interest rates, and for general corporate purposes. The new notes are secured by upstream producing assets in the Western Anadarko Basin.
Key Highlights
- DP Red River LLC, a subsidiary of Diversified Energy, issued $850 million in fixed-rate asset-backed securities (ABS XII Notes).
- The offering included $590 million of 6.016% Class A-1 Notes and $260 million of 6.910% Class A-2 Notes, both due 2046.
- Proceeds were used to redeem existing ABS Maverick Notes (8.121%, 8.946%, 12.436% due 2038) and ABS VI Notes (7.50% due 2039).
- The ABS XII Notes have an expected repayment date of May 2031 and a legal final maturity of May 2046.
- The new notes are primarily secured by specific upstream producing assets in the Western Anadarko Basin.
- The ABS XII Notes are subject to customary covenants, including reserve account maintenance and accelerated amortization events.
Price Impact
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