General
Methanex refinances $291 million Natgasoline debt with new tax-exempt bonds
Proceeds from the offering will be loaned to Natgasoline and used to repay the existing $290.95 million in municipal bonds issued in 2018
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By ICN Bureau | August 22, 2026
Methanex Corporation is refinancing $290.95 million in Natgasoline LLC debt through a new tax-exempt bond issue, extending the joint venture’s financing runway and easing near-term repayment pressure.
Natgasoline, a joint venture between Methanex and Consolidated Energy Limited in which Methanex holds a 50% equity interest, has priced the new bonds at a 4.75% coupon. The bonds, issued by Mission Economic Development Corporation, carry a mandatory tender date of August 1, 2036, and a final maturity date of August 1, 2046.
Proceeds from the offering will be loaned to Natgasoline and used to repay the existing $290.95 million in municipal bonds issued in 2018, which were scheduled to mature in 2031.
The refinancing comes as the existing bonds had entered semi-annual amortization through a sinking fund redemption that began October 1, 2025. The new financing effectively pushes out mandatory repayment obligations, giving Natgasoline greater flexibility over its cash flows.
“We are pleased with this refinancing as it maintains a solid financial base for the Natgasoline joint venture, deferring mandatory amortization payments that were coming due. This will provide the entity with greater flexibility for the use of operating cash flows moving forward, including the potential to deleverage through the repayment of higher-cost borrowings in this entity.”
Dean Richardson, Senior Vice President, Finance and Chief Financial Officer of Methanex Corporation, said the refinancing could also create an opportunity for Natgasoline to reduce more expensive debt over time.
Closing of the bond offering is expected on or about August 28, 2026, subject to customary closing conditions.
