Esentia Energy Development Announces Pricing of $2 Billion Senior Notes

Esentia Energy Development, S.A.B. De C.V. (“Esentia” or the Company), today announced the successful pricing of a combined US$2 billion in senior unsecured notes, marking a significant refinancing milestone for the Mexican energy firm. The offering consists of two tranches: US$1 billion in 6.125% Senior Notes due 2033 and US$1 billion in 6.500% Senior Notes due 2038. Both tranches will be issued to qualified institutional buyers under Rule 144A of the U.S. Securities Act and Regulation S for non-U.S. Investors.

The 2033 Notes are priced at 99.517% of face value, while the 2038 Notes are priced at 98.444%. Settlement is expected on May 14, 2026, subject to customary closing conditions. The notes are fully and unconditionally guaranteed by certain of Esentia’s subsidiaries, reflecting the company’s commitment to financial stability and investor confidence.

Strategic Use of Proceeds Esentia will deploy the proceeds primarily to fund a tender offer by its subsidiary, Esentia Gas Enterprises, S. De R.L. De C.V., to purchase all outstanding 6.375% Senior Secured Notes due 2038. The funds will be used to prepay the 5.465% Senior Secured Notes due 2041 issued by Esentia Pipeline El Encino, S. De R.L. De C.V., as well as to settle other outstanding indebtedness. Any remaining proceeds will be allocated for general corporate purposes.

This refinancing move underscores Esentia’s proactive approach to managing its debt profile and optimizing its capital structure. The company’s decision to issue long-term notes also signals its confidence in maintaining strong financial health amid evolving energy market dynamics.

Market Context and Forward Outlook Esentia’s bond issuance comes at a time when Mexican energy companies are increasingly turning to international capital markets to fund expansion and refinancing needs. The company’s ability to secure investor confidence in both the 2033 and 2038 tranches highlights its standing in the global financial community.

However, the company has also issued a cautionary statement regarding forward-looking projections, noting that actual results may vary due to market conditions, operational risks, and other uncertainties. Investors are advised to consider these factors when evaluating the company’s financial outlook.

As Esentia prepares to settle the notes on May 14, 2026, the company’s next steps will be closely watched by market participants, particularly in light of its ongoing efforts to strengthen its balance sheet and support its growth strategy in the energy sector.