Esentia Prices US$2 Bln Senior Notes Offering

KUALA LUMPUR, May 11 (Bernama) -- Esentia Energy Development S.A.B. de C.V. (Esentia) announced the pricing of US$2 billion in senior notes through a private offering to qualified institutional buyers and non-United States (US) investors. (US$1 = RM3.91)

The offering comprises US$1 billion in 6.125 per cent senior notes due 2033 (2033 Notes) and US$1 billion in 6.500 per cent senior notes due 2038 (2038 Notes).

The company said the 2033 notes were priced at 99.517 per cent, while the 2038 notes were priced at 98.444 per cent. Settlement is expected on May 14, subject to customary closing conditions.

According to the company in a statement, the notes will be fully and unconditionally guaranteed by certain subsidiaries.

Esentia said proceeds from the offering would be used to finance a tender offer by subsidiary Esentia Gas Enterprises S. de R.L. de C.V. to purchase for cash and its outstanding 6.375 per cent senior secured notes due 2038.

The proceeds will also be used to prepay outstanding 5.465 per cent senior secured notes due in 2041 issued by subsidiary Esentia Pipeline El Encino S. de R.L. de C.V., prepay other borrowings and support general corporate purposes.

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

-- BERNAMA