#Luxembourg #Luxembourg City #Breakwater Energy #EIG #Repsol EP

Breakwater Energy Holdings Announces Notes Offering

On November 6, 2025, Breakwater Energy Holdings S.à r.l. disclosed the pricing of its offering of senior secured notes. This offering amounts to a total of $725 million, with a maturity set for 2030. The main goals for raising this capital include repaying some of the outstanding amounts related to the acquisition of Repsol EP S.à r.l.'s ordinary stock and covering supplementary fees and expenses.

Breakwater Energy operates in collaboration with EIG, which is renowned as a primary institutional investor in the global energy and infrastructure sectors, overseeing $23.8 billion as of June 30, 2025. Together, they represent a formidable force in the energy market, specifically with a focus on maintaining sustainable, efficient hydrocarbon operations.

Key Elements of the Offering

The senior secured notes, with an interest rate of 9¼%, come under conditions that restrict their sale and distribution to certain jurisdictions, ensuring compliance with various regulatory guidelines. The offering memorandum highlights that these notes have not been registered under the U.S. Securities Act and thus can only be offered to qualified institutional buyers. This limitation seeks to mitigate legal risks while targeting a specific investor demographic.

The issuance represents a strategic move by Breakwater Energy Holdings, aimed at strengthening its foothold within the energy sector by allowing the company to manage its financial commitments more effectively. Investors are expected to benefit from the yield generated through these high-interest notes, particularly as Breakwater Energy continues to pursue profitable ventures in hydrocarbon exploration, development, and commercialization.

Purpose of the Funding

The proceeds from the notes offering serve dual purposes:
1. Repaying Outstanding Amounts: The capital will address previous financial obligations concerning the acquisition of Repsol EP's stock. This acquisition positions Breakwater Energy as a significant player in the upstream oil and gas market, contributing to the company's broader strategy for growth and expansion.
2. Covering Related Fees: Additional funds will be allocated to manage fees and operational costs associated with the transaction. This thorough planning underlines Breakwater’s commitment to financial responsibility and strategic positioning.

About EIG and Breakwater Energy

EIG has carved a niche for itself as a leading institutional investor specifically focused on energy and infrastructural investments, committing over $51.3 billion across 420 projects or companies across 44 countries in its 43 years of operation. The company's diverse clientele spans some of the largest pension plans, sovereign wealth funds, and endowments in the United States, Asia, and Europe, marking its influence and trustworthiness in the investment landscape.

The collaboration between Breakwater and EIG signifies a robust strategy focused on tapping into the evolving global energy market, ensuring that investments are made judiciously while addressing modern challenges in the energy sector, such as sustainability and profitability.

Conclusion

The notes offering by Breakwater Energy Holdings reflects a calculated approach to financing within a competitive sector. With the potential for significant returns for investors and strong backing from EIG, this offering not only lays out Breakwater’s near-term financial strategies but also its long-term vision as a leader within the energy landscape. As they move forward, the expectations are high for what this funding can achieve.

As Breakwater Energy navigates subsequent developments, stakeholders will be keen to observe how effectively it implements its growth initiatives and the returns these strategic choices yield for investors and the industry alike.