Diversified Energy Co 8-K

What Happened
Diversified Energy Company (filed Feb 10, 2026) announced that on Feb 5, 2026 its wholly‑owned subsidiary, Diversified Gas & Oil Corporation (DGOC), completed a $200 million tap offering of 9.75% senior secured bonds due April 9, 2029. The tap supplements $300 million of the same bonds issued in April 2025, bringing the series to $500 million in principal. The bonds are guaranteed by Diversified Energy and were issued under a Tap Issue Addendum to the original Bond Terms with Nordic Trustee AS.

Key Details

• Issuer: Diversified Gas & Oil Corporation (DGOC); guarantor: Diversified Energy Company.
• Size & rate: $200 million tap offering of 9.75% senior secured bonds; total series now $500 million.
• Maturity & interest: Mature April 9, 2029; interest paid semi‑annually on April 9 and October 9.
• Security: Secured by the Company’s U.S. bank accounts, equity interests in DGOC and its direct operating subsidiaries, and certain intercompany loan interests.
• Redemption: Early redemption before April 9, 2027 requires make‑whole payment; redemptions on/after that date subject to declining premiums. Change‑of‑control or delisting can trigger a 101% repurchase right for holders.
• Financial covenants: leverage ratio ≤ 3.5:1.00; asset coverage ratio ≥ 1.20:1.00; book equity ≥ $500,000,000; liquidity ≥ 25% of outstanding Bonds.
• Events of default include non‑payment, uncured breaches of finance obligations (20 business day cure period after notice/knowledge), and bankruptcy/insolvency events.

Why It Matters
This 8‑K documents additional secured debt that increases the outstanding bond series to $500M and places specific limits on the company’s leverage, liquidity and equity levels. For investors, the security package and covenants affect creditor priority and restrict certain corporate financial actions; the interest rate and maturity define the company’s fixed cash interest obligations through 2029. The change‑of‑control/delisting repurchase right and default provisions are standard protections for bondholders and can affect liquidity or corporate flexibility if triggered.