Sidley is representing Presidio Finance LLC (Presidio Petroleum), a portfolio company of Morgan Stanley Energy Partners, in the largest to date by value securitization of oil and gas proved developed producing (PDP) assets. The scale of this transaction was made possible through the creation of an innovative issuance of term asset-backed securities (Notes) in a private placement transaction with a diverse syndicate of institutional investors. The Notes are the first such issuance to a diverse syndicate of Note purchasers, and include two investment-grade rated tranches. Presidio Petroleum plans to use the net proceeds of the issuance to accelerate its acquisition-driven growth strategy in the Midcontinent region of the United States and recapitalize its balance sheet.
The large cross-office and cross-practice Sidley team was led by energy partners Daniel Allison and Marc Rose, and securitization partner Tracey Nicastro. The team also included derivatives partner Ellen Pesch and counsel Azad Assadipour, energy partner Jim Rice and associate Jeremy Pettit, securitization and structured finance partner Carlos Rodriguez and associate Alexander Hirshfeld, tax partner Zackary Pullin, energy finance partner Robert Stephens and associates Andy Chen, Kaitlin Schock, Matthew A. Thompson, and Kevin Carson, as well as corporate associates Ellen Heighten and Jon Litsey.
A market leader in securitization and structured finance, our lawyers have been at the forefront of the creation of many structured finance products since the 1970s. In addition, our prominent energy team, which includes industry veterans with more than 25 years of experience, provides cutting edge advice on issues facing investors, oil and gas companies, and financing providers in a full range of transactions involving all of the major basins in the United States, both onshore and offshore.