Presidio Production (FTW) has closed a $350 million investment-grade refinancing of its prior asset-backed securitization, obtaining a lower interest rate, the oil-and-gas producer disclosed late Tuesday.
The new debt has a weighted average coupon of 6.38%, about 184 basis points less than the prior debt, said Presidio.
The transaction also reduced scheduled amortization, "enhancing free cash flow available for dividends," said Presidio.
Of the new $350 million borrowed, $263 million was used to pay off existing debt, accrued interest and make-whole fees, $37 million was used to pay down revolving funds, and $35 million used for additional hedge protection on oil prices.
The remainder of the new borrowed funds was used for transaction fees, expenses and general corporate purposes, said Presidio Production.