Diamondback Energy Secures $1.5 Billion Loan for Acquisition
Deal News | Mar 21, 2025 | Wachtell, Lipton, Rosen & Katz
Diamondback Energy, Inc., in conjunction with Diamondback E&P LLC, has entered into a significant financial agreement to support its strategic acquisition endeavors. On March 21, 2025, the company announced a $1.5 billion Term Loan Credit Agreement with Bank of America, N.A. serving as the administrative agent. This move is complemented by an amendment to their existing $2.5 billion Revolving Credit Agreement with Wells Fargo Bank, National Association. The financing supports the acquisition of certain subsidiaries of Double Eagle IV Midco, LLC, indicating a strategic expansion in Diamondback's operations. Wachtell, Lipton, Rosen & Katz served as the advisor for this transaction, showcasing Diamondback's intentions to fortify its presence and capabilities in the energy sector through calculated financial maneuvers.
Sectors
- Energy
- Finance
Geography
- United States – Diamondback Energy and the other entities involved, including Bank of America and Wells Fargo, are based in the United States.
Industry
- Energy – The article discusses Diamondback Energy's acquisition and financial strategies, a key player in the energy sector.
- Finance – The transaction involves significant loan agreements and credit facilities, emphasizing corporate finance activities.
Financials
- 1.5 billion – Amount for the Term Loan Credit Agreement with Bank of America.
- 2.5 billion – Amount for the amended Revolving Credit Agreement with Wells Fargo.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Diamondback Energy, Inc. | Acquiring Company | Company | A leading independent oil and natural gas company. |
| Diamondback E&P LLC | Affiliated Company | Company | An affiliate of Diamondback Energy, involved in the transaction. |
| Double Eagle IV Midco, LLC | Target Company | Company | A subsidiary being acquired by Diamondback Energy. |
| Bank of America, N.A. | Financial Institution | Company | Serves as the administrative agent for the $1.5 billion term loan facility. |
| Wells Fargo Bank, National Association | Financial Institution | Company | Administrative agent for the amended revolving credit facility. |
| Wachtell, Lipton, Rosen & Katz | Legal Advisor | Company | Provided legal advice to Diamondback Energy on the transaction. |