We advised Esentia on its inaugural investment-grade debt offering

Davis Polk advised Esentia Energy Development, S.A.B. de C.V. in connection with a Rule 144A / Regulation S inaugural offering of $1 billion aggregate principal amount of its 6.125% senior notes due 2033 and $1 billion aggregate principal amount of its 6.500% senior notes due 2038. The notes were sold in an offering exempt from registration pursuant to Rule 144A and Regulation S and are guaranteed by certain subsidiaries of Esentia. The proceeds from the offering were used by Esentia to prepay, in full, certain credit facilities entered into by its project subsidiaries and to fund a concurrent cash tender offer for any and all of the outstanding 6.375% senior secured notes due 2038 issued by its subsidiary, Esentia Gas Enterprises, S. de R.L. de C.V.

Esentia is a leading company in Mexico’s energy sector, specializing in the transportation and commercialization of natural gas. With over 20 years of experience, Esentia develops infrastructure projects that foster growth and expand access to energy, contributing to Mexico’s well-being and sustainable development. The company operates Mexico’s largest interconnected natural gas system, which delivers reliable, cost-efficient natural gas from Waha, Texas, across central Mexico to the country’s key industrial regions.

The Davis Polk capital markets team included partner Hillary A. Coleman and associates Agustin N. Lopez Roualdes and Gabriela N. Gura. The finance team included partner David J. Penna, counsel Costanza Garcia Laposse and associate Jennifer De Jesus. Counsel Ziyuan (Constance) Zhang and associate Georgianna Eck provided tax advice. Counsel Matthew R. Silver and associate Thomas Di Biasio provided 1940 Act advice. Members of the Davis Polk team are based in the New York and Washington DC offices.

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