PRESIDIO PRODUCTION Co 8-K

What Happened
Presidio Production Company announced that its indirect subsidiary Presidio Finance LLC issued $350 million of asset‑backed securities (ABS) in a private offering on June 9, 2026. The offering consists of $175 million of 5.902% Class A‑1 Notes and $175 million of 6.717% Class A‑2 Notes (Series 2026‑1). The new securities are issued under a Second Amended and Restated Indenture and are guaranteed by Presidio Finance Nominee Corp. and Presidio Finance Holding Company LLC. Net proceeds were used to redeem in full the outstanding Series 2023‑1 Class A‑1 and A‑2 notes (due 2038), pay related premiums, fees and expenses, fund an initial liquidity reserve, and for general corporate purposes. The ABS are secured primarily by upstream producing assets in Texas and Oklahoma that previously collateralized the 2023 notes.

Key Details

• Total issuance: $350 million (2 tranches of $175M each). Issuance date: June 9, 2026.
• Coupon rates: 5.902% for Class A‑1; 6.717% for Class A‑2. The legal documentation references 2041, while the Series 2026‑1 Class A‑1 has a final scheduled payment date in August 2033 and the Class A‑2 in February 2035.
• Use of proceeds: full redemption of Series 2023‑1 Class A‑1 (7.806%) and Class A‑2 (8.418%) notes due 2038, plus premiums, expenses, accrued interest, and funding the liquidity reserve.
• Documents and trustee: Issued under a Second Amended & Restated Indenture and a Series 2026‑1 Supplement dated June 9, 2026; UMB Bank, N.A. is Indenture Trustee.

Why It Matters
This transaction refinances higher‑cost debt (2023 notes with ~7.8%–8.4% coupons) with lower‑coupon ABS (5.902% and 6.717%), which should reduce Presidio’s interest cost on these secured obligations and improve cash flow flexibility. The notes remain secured by upstream oil & gas assets in Texas and Oklahoma and include customary covenants, reserve requirements, prepayment/acceleration events and default triggers that investors should note—especially provisions that can accelerate amortization or increase the coupon if the notes are not repaid or refinanced by the specified final scheduled payment dates.