Presidio Announces $350 Million Investment Grade ABS Refinancing
Refinancing lowers interest rate, reduces amortization, and increases liquidity
Proceeds from the ABS were used to refinance Presidio's prior ABS, to pay down $37 million drawn under the Company's reserve-based lending facility (the “RBL”), for $35 million of additional hedges, and for expenses and general corporate purposes. Following the transaction, the RBL remains in place with a $65 million borrowing base, and is available and undrawn.
“This refinancing is a milestone that strengthens the foundation of our business. We have lowered our cost of capital, reduced near-term interest and amortization, and created additional liquidity to pursue growth, all while keeping our capital structure simple,” said Will Ulrich, Chairman and co-CEO of Presidio. “The refinancing highlights the competitive advantage of a deep and efficient ABS end-market, which when paired with our ABS warehouse facility, provides a complete solution for financing PDP acquisitions.”
John Brawley, EVP & CFO of Presidio, added, “Lowering our cost of capital is a significant competitive advantage in the PDP acquisition market. With a lower-cost capital structure in place, we can underwrite acquisitions more aggressively than higher-cost buyers, while preserving the returns we deliver to shareholders. This positions us to continue consolidating producing oil and gas assets on attractive terms.”
