Legado Capital Advisors Completes $400 Million Financing for Diversified Energy Corporation

In a significant achievement for the energy sector, Legado Capital Advisors, LLC has announced the successful closing of a remarkable $400 million Asset-Backed Securities (ABS) financing transaction for Diversified Energy Corporation (NYSE: DEC). This financing is specifically aimed at supporting the acquisition of Canvas Energy, further strengthening Diversified Energy's operational capabilities.

This monumental transaction, closed on December 3, 2025, is noteworthy as it marks Diversified Energy's 11th ABS financing deal, showcasing the firm's sustained commitment to innovative financial strategies. Legado Capital Advisors acted as the structuring agent and debt financial advisor, playing a critical role in this acquisition financing.

Victor Mendoza, head of Legado Capital Advisors, expressed his satisfaction with the transaction, stating, "It was a pleasure to have worked on this transformative financing with the Diversified team. This ABS was utilized for direct acquisition financing without the need for a Bridge Facility, significantly saving time and costs and ensuring a seamless closing process."

Benefits of ABS Financing

The use of ABS in this context is transformative as it allows buyers like Diversified Energy to optimize their cost of capital during acquisitions, while sellers benefit by securing advantageous terms for their assets. This innovative financing structure is indicative of the shifting landscapes in the financial markets, where traditional funding methods are increasingly complemented by modern solutions.

The ABS transaction involved the structuring of a $400 million ABS XI note, organized as a master trust. It leveraged Diversified's prior strategic partnership with The Carlyle Group, which was instrumental in optimizing the terms and condition of the notes. The tranche notes priced at a blended coupon rate of 5.97%, a favorable rate that reflects the high-quality asset profile of Canvas Energy.

This financing not only empowers Diversified Energy in pursuing its strategic goals but also aligns with the larger industry trends that emphasize efficient capital management and innovative financial solutions. Moreover, it serves to bolster Diversified's capital structure, positioning the company for long-term success in the competitive energy market.

About Legado Capital Advisors

Legado Capital Advisors is recognized as a leading advisory and capital solutions firm specializing in structured finance and strategic transactions. With deep expertise in the oil and gas sector, the firm prides itself on its innovative financial advisory services that help clients optimize their capital structures and achieve sustainable value creation.

This accomplishment underscores Legado's reputation in the industry and highlights its ability to deliver tailored financial solutions that meet the evolving needs of its clients. Engaging with clients on a relationship-driven basis, Legado seeks to enhance their positioning in the capital markets while prioritizing long-term growth.

As this transaction reflects, the energy sector is undergoing a substantial transformation, and companies that adapt to new financing methods will likely have a competitive advantage moving forward. Legado Capital Advisors continues to stand at the forefront of these advancements, offering clients insightful strategies and solutions to address their most pressing financial challenges.