Parex Resources to raise $500M in senior notes for Colombia acquisition

What's the deal? Parex Resources, the Calgary-based oil and gas company, is issuing $500M in senior unsecured notes due 2031 through a private placement. The notes were priced at par with an 8.50% annual interest rate and are expected to close on May 11, 2026.

The proceeds will fund the cash portion of Parex's previously announced acquisition of Frontera Energy Corporation's exploration and production assets in Colombia. Net proceeds will sit in escrow until that deal closes, which is expected in Q2 2026.

Why now? Parex needs cash to complete the Frontera transaction. The offering is tightly linked to that acquisition — escrow release conditions require the deal to close in accordance with the arrangement agreement before funds are disbursed.

Deutsche Bank Securities, Itaú BBA, Santander, and ScotiabankDealroom has a profile for this one. Try Dealroom → are acting as global coordinators and joint bookrunners, with BMO Capital MarketsDealroom has a profile for this one. Try Dealroom → as passive bookrunner and BBVA and Bladex as co-managers.

What could go wrong? The escrow structure signals awareness of execution risk. If the Frontera acquisition falls through, the proceeds remain locked up. The 8.50% coupon is also a notable cost of capital — Parex is paying a premium to secure financing ahead of a major deal.

The signal: The involvement of major Latin America-focused banks — Itaú BBA, Santander, and BBVA — alongside North American institutions like Scotiabank and BMO Capital Markets underscores cross-border investor appetite for Colombian upstream assets, even as the country's regulatory environment remains a source of uncertainty for the sector. An 8.50% coupon on a five-year note prices in meaningful country and commodity risk, setting a benchmark for future debt-funded energy consolidation in the region.

Read more: Business Insider