Loan & DebtJun 11, 2026, 06:07 AM
Presidio Production Co. Refinances $350M ABS Debt at Lower Rate
AI Summary
Presidio Production Company announced the closing of a $350 million investment grade refinancing of its prior asset-backed securitization (ABS III Notes). The new notes, issued by subsidiary Presidio Finance LLC, carry a weighted-average coupon of 6.38%, a reduction of 184 basis points from the previous ABS. Proceeds were used to redeem existing debt, pay associated fees, and reduce the company's reserve-based lending facility. This refinancing is expected to lower interest costs, reduce amortization, and enhance free cash flow.
Key Highlights
- Presidio Finance LLC issued $350 million in fixed-rate asset-backed securities (ABS III Notes).
- The ABS III Notes consist of $175 million of 5.902% Class A-1 Notes due 2041 and $175 million of 6.717% Class A-2 Notes due 2041.
- Proceeds were used to redeem $350 million of existing notes, pay premiums and fees, and for general corporate purposes.
- The ABS III Notes are secured by producing oil and gas assets in Texas and Oklahoma.
- The refinancing resulted in a weighted-average coupon of 6.38%, a reduction of 184 basis points from the prior ABS.
- The company also paid down $37 million drawn under its reserve-based lending facility (RBL), which remains undrawn with a $65 million borrowing base.
Price Impact
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