A Reed Smith energy transactions team has successfully advised Diversified Energy Company PLC (Diversified) in connection with an innovative and first-of-its-kind asset-backed securitization (ABS) and equity capital transaction with a cash value to Diversified of approximately $200 million.
The deal, led by Reed Smith partners Ryan Purpura and Ryan Haddad, involved the securitization of producing oil and gas assets in Pennsylvania and Ohio (the Assets) and accompanying notes offering via special purpose vehicle (SPV), and the subsequent sale of 80% of the SPV’s parent entity. Following consummation of the transactions, Diversified retains a 20% equity interest and operatorship of the Assets.
“This innovative transaction provides a path for the client to unlock additional value from its assets while enhancing the company’s liquidity,” said Purpura, who also co-leads Reed Smith’s global Energy and Natural Resources Group.
Owing to the complex nature of the deal, Purpura and Haddad assembled an experienced, multidisciplinary team of Reed Smith colleagues that included partners Lyn Reinhardt and Robert Phillpott and associates Megan Skiba, Brandon Dekema and Kyle Higgins, who worked closely with Diversified’s business team, including general counsel Ben Sullivan and associate general counsel Jamie Adkins.
For more information about the deal, please see Diversified’s Jan. 2 news release.
In March 2023, Reed Smith’s energy transactions team successfully advised Diversified in its $250 million acquisition of several high-quality accretive energy properties and related assets from Tanos Exploration, an oil and natural gas drilling company based in Tyler, Texas.
Original source can be found here.