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Diversified Gas & Oil Closing of $1 billion Credit Facility

Source: www.gulfoilandgas.com 7/19/2018, Location: North America

Diversified Gas & Oil PLC the U.S.-based acquirer and operator of gas and oil producing assets, announced the closing of an enlarged $1 billion, five-year senior secured revolving credit facility (the "Facility") with KeyBanc Capital Markets ("KeyBanc"), The Huntington National Bank ("Huntington"), and Citizens Bank, N.A. ("Citizens") and Branch Banking and Trust Company ("BB&T") who collectively acted as joint lead arrangers. KeyBanc provided Diversified with a fully underwritten Borrowing Base in support of the Company's $575 million acquisition of EQT Corporation's southern Appalachian gas and oil and midstream assets (the "EQT Asset Acquisition"), and later partnered with Huntington and Citizens to co-underwrite the borrowing base prior to the broader re-syndication. Upon a successful re-syndication, the Facility includes five new lending institutions for a total of 11 participating banks, which include ING Capital LLC, IberiaBank, CIBC, Credit Agricole, US Bank, CIT Bank, and First Tennessee.

The Facility's current borrowing base of $600 million is three times larger than the prior facilities $200 million base, and highlights the strength of the Company's growing, high-quality base of proved reserves.

The enlarged Facility follows the highly successful completion of DGO's $250 million equity raise and its EQT Asset Acquisition, which increases the Company's proved-developed-producing reserves by more than 140% to approximately 2.4 trillion cubic feet of gas equivalent. The acquisition also provides the Company with a midstream asset that includes 6,400 miles of pipeline and 59 compressor stations that significantly enhance the economics of the Company's production in that region of the Basin.

CEO, Rusty Hutson, Jr. commented:
"Building on the strong relationship we have developed with KeyBanc, Huntington and Citizens, we are pleased to have closed on the EQT Asset Acquisition that underpinned our need to triple the size of our borrowing base in less than four months from first establishing the facility in March of this year. The completion of this enlarged facility strengthens our balance sheet, affords us more than $200 million of liquidity and maintains our low financing costs. I'd like to thank each of the banks for their support of our strategy to acquire long-life, low decline producing assets."

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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