Goldman Sachs Teams with Presidio on Groundbreaking $1 Billion Debt Facility
Presidio Investment Holdings is working with Goldman Sachs to create a unique debt facility worth up to $1 billion. This first-of-its-kind financing structure will allow Presidio, a US oil and gas producer, to pursue acquisitions as it becomes a publicly listed company.
The energy producer's business model involves improving production from existing wells rather than prospecting for new drilling locations. The debt facility will enable Presidio to finance the purchase of new assets, with Goldman holding the acquisition debt until it is put into a future asset-backed securitization (ABS).
Presidio's Chief Financial Officer, John Brawley, said that this financing structure will give the company a significant advantage over others using standard ABS. It allows for immediate access to funds and quicker deal closures, with lower debt costs compared to a bridge loan.