Kuala lumpur: Esentia Energy Development S.A.B. de C.V. (Esentia) has announced the successful pricing of US$2 billion in senior notes via a private offering to qualified institutional buyers and non-United States (US) investors. The offering consists of US$1 billion in 6.125 percent senior notes due 2033 and US$1 billion in 6.500 percent senior notes due 2038. The 2033 notes were priced at 99.517 percent, while the 2038 notes were priced at 98.444 percent, with settlement anticipated on May 14, pending customary closing conditions.

According to BERNAMA News Agency, the notes will be fully and unconditionally guaranteed by certain subsidiaries of Esentia. The proceeds from this offering are earmarked for financing a tender offer by Esentia Gas Enterprises S. de R.L. de C.V., a subsidiary, to purchase cash and its outstanding 6.375 percent senior secured notes due 2038. Additionally, the funds will be used to prepay outstanding 5.465 percent senior secured notes due in 2041, issued by another subsidiary, Esentia Pipeline El Encino S. de R.L. de C.V., as well as to prepay other borrowings and support general corporate purposes.

The company stated that the notes were offered under Rule 144A of the US Securities Act of 1933 and Regulation S for investors outside the US.