Diversified Energy to Repurchase 3.75M Shares After EIG Affiliate Sells 7.5M at $14.45
Diversified Energy priced an underwritten secondary offering of 7,501,585 existing shares at $14.45 apiece, representing the full stake held by an EIG affiliate. Concurrently, the company agreed to repurchase 3,750,000 shares at $14.45, deploying roughly $54.2 million in cash, with settlement expected March 11.
1. Offering Structure and Pricing
Diversified Energy sold 7,501,585 existing common shares at $14.45 per share in an underwritten secondary offering, representing all remaining holdings of an affiliate-managed EIG fund.
2. Repurchase Agreement and Cash Impact
The company has committed to repurchase 3,750,000 shares from the underwriter at the same $14.45 price, resulting in an approximate $54.2 million cash outlay, while receiving no proceeds from the broader secondary sale.
3. Settlement and Underwriting Details
The transactions are slated to settle on March 11, subject to customary conditions, with Citigroup serving as sole bookrunning manager and the shelf registration effective upon filing.
4. Capital Structure Implications
The buyback will reduce outstanding shares by 3.75 million, potentially bolstering earnings per share and tightening share float following the EIG affiliate’s exit.