Diversified Energy Company PLC (DEC) announced a potential $100 million senior secured bond tap that would be issued on the same terms as its existing April 2029 bonds. The announcement was made on January 23 2026, and the company scheduled investor meetings to begin that day.
The new issuance would add to the $300 million of 9.75 % senior secured notes due April 2029 that DEC placed in April 2025. If the tap is completed, the April 2029 series would total at least $400 million, increasing the company’s senior secured debt by roughly 33 % and tightening its leverage profile.
DEC said the net proceeds would be used for “general corporate purposes.” While the company did not detail the allocation, the wording aligns with its broader strategy of maintaining financial flexibility to refinance existing debt, fund future acquisitions, and support capital expenditures on its mature natural‑gas and oil assets.
The bond tap is subject to market conditions and will be offered to qualified institutional buyers under Rule 144A in the U.S. and will not be registered under the Securities Act. The company appointed DNB Carnegie as manager and bookrunner, the same firm that handled the April 2025 placement.
The announcement follows a strong first‑half 2025 performance, in which DEC reported $510 million in revenue and $280 million in adjusted EBITDA. The company’s partnership with The Carlyle Group, which committed $2 billion, underscores its confidence in continued growth and shareholder returns.
By adding debt at a 9.75 % coupon, DEC preserves its ability to access capital markets at a competitive rate while positioning itself to capitalize on opportunities in the U.S. energy market. The move signals management’s intent to balance leverage with growth initiatives.
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