Methanex Provides Update on Natgasoline Refinancing

Rhea-AI Summary

Methanex (Nasdaq: MEOH) reported that Natgasoline LLC, its 50%-owned joint venture with Consolidated Energy, has arranged a $290,950,000 tax-exempt bond issue by Mission Economic Development Corporation (the “2026 Bonds”). The bonds carry a 4.75% coupon, a mandatory tender date of August 1, 2036 and final maturity on August 1, 2046.

According to Methanex, proceeds will be loaned to Natgasoline to repay the existing $290,950,000 2018 municipal bonds maturing in 2031, which were scheduled for semi-annual amortization starting October 1, 2025. Closing is expected around August 28, 2026, subject to customary conditions, and is intended to defer mandatory amortization and increase cash flow flexibility at Natgasoline.

Positive

• $290.95 million Natgasoline bonds refinanced with new 2026 tax-exempt issue
• New 2026 Bonds extend Natgasoline debt final maturity to August 1, 2046
• Refinancing defers semi-annual amortization on 2018 Bonds that began October 1, 2025
• Methanex highlights improved flexibility for Natgasoline’s operating cash flow management

Negative

• None.

News Explained

Natgasoline’s refinancing has been priced but is not closed; Methanex says the resulting operating-cash-flow flexibility could support repayment of higher-cost borrowings, although the release specifies neither the debt nor an amount.

Market Context

A prior -2.21% response to a dividend notice shows that favorable corporate announcements did not co...

Analysis

A prior -2.21% response to a dividend notice shows that favorable corporate announcements did not consistently align with next-day trading. For this refinancing, investors could watch closing completion and debt-service flexibility.

Key Figures

Refinancing principal: $290,950,000 Equity interest: 50% Coupon rate: 4.75% +4 more

7 metrics

Refinancing principal $290,950,000 2026 Bonds

Equity interest 50% Methanex interest in Natgasoline LLC

Coupon rate 4.75% 2026 Bonds

Mandatory tender date August 1, 2036 2026 Bonds

Final maturity date August 1, 2046 2026 Bonds

Existing bond maturity 2031 2018 Bonds

Expected closing August 28, 2026 Subject to customary closing conditions

Historical Context

5 past events · Latest: Jul 28 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 28	earnings report	Positive	+2.7%	Record production and stronger methanol pricing drove improved quarterly earnings.
Jul 15	dividend announcement	Positive	-2.2%	Board declared a quarterly cash dividend of US$0.185 per share.
Jun 29	operations update	Negative	-5.4%	Methanex announced indefinite idling of the Titan methanol plant.
Apr 30	meeting results	Neutral	-2.0%	Shareholders elected directors, reappointed the auditor and approved compensation.
Apr 29	dividend announcement	Positive	+3.5%	Board declared a quarterly cash dividend of US$0.185 per share.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Methanex's historical news reactions were mixed, with positive announcements producing both aligned gains and divergences.

Key Terms

tax-exempt bonds, mandatory tender date, coupon rate, semi-annual amortization, +1 more

5 terms

tax-exempt bonds financial

"priced the issuance of tax-exempt bonds by Mission Economic Development Corporation"

Tax-exempt bonds are loans investors make to governments or certain public entities where the interest paid is exempt from federal (and sometimes state or local) income tax. For investors, that tax break often means a lower stated interest rate can be more attractive after taxes, so you compare returns like comparing prices after a coupon—what matters is the money you actually keep, and also the issuer’s creditworthiness and changing tax rules affect the true value.

mandatory tender date financial

"a mandatory tender date of August 1, 2036"

The mandatory tender date is the final deadline in a required takeover or buyout process when holders must submit (tender) their shares or securities to the offer to complete the transaction. It matters to investors because that date fixes who will be part of the deal and at what price, like a last-day RSVP that determines who attends and how the event’s outcome — ownership, control and the stock’s liquidity — will change afterward.

coupon rate financial

"The coupon rate on the 2026 Bonds was set at 4.75%."

The coupon rate is the annual interest percentage a bond or similar debt security promises to pay, calculated on its face value and usually delivered in regular payments like a steady paycheck. For investors it shows the expected income from holding the bond and helps compare returns across investments; it also affects a bond’s market price because higher or lower prevailing interest rates make that fixed payment more or less attractive.

semi-annual amortization financial

"The 2018 Bonds were subject to a semi-annual amortization"

A repayment or expense schedule that spreads amortization across two equal accounting periods each year, with principal (for a loan) or the cost of an intangible asset being reduced in semi-annual installments rather than monthly or annually. It matters to investors because it affects a company’s cash flow timing, interest expense recognition and reported profits—similar to making two larger loan payments a year instead of many small ones, which changes when cash leaves the business and when costs appear on the books.

sinking fund redemption financial

"through a sinking fund redemption initiated on October 1, 2025"

A sinking fund redemption is when a bond issuer uses money it has been setting aside in a dedicated account to retire, buy back, or call a portion of its outstanding bonds before their final maturity. Think of it like a borrower putting regular savings into a piggy bank to pay down a mortgage early; for investors this can change when they get principal back and can affect bond prices and yields because some bonds may be redeemed earlier than expected.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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VANCOUVER, British Columbia, Aug. 20, 2026 (GLOBE NEWSWIRE) -- Methanex Corporation (the “Company” or “Methanex”) (TSX: MX) (Nasdaq: MEOH) announced today that Natgasoline LLC, a joint venture with Consolidated Energy Limited in which Methanex holds a 50% equity interest, has priced the issuance of tax-exempt bonds by Mission Economic Development Corporation with a principal amount of $290,950,000 (the “2026 Bonds”), a mandatory tender date of August 1, 2036, and a final maturity date of August 1, 2046. The proceeds of the issuance will be loaned to Natgasoline LLC and used to repay the existing $290,950,000 Natgasoline municipal bonds issued in 2018, which mature in 2031 (the ”2018 Bonds”). The coupon rate on the 2026 Bonds was set at 4.75%. Closing of the bond offering is expected to occur on or about August 28, 2026, subject to customary closing conditions. The 2018 Bonds were subject to a semi-annual amortization through a sinking fund redemption initiated on October 1, 2025.

Dean Richardson, Senior Vice President, Finance and Chief Financial Officer, Methanex Corporation, stated, “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.”

ABOUT METHANEX

Methanex is a Vancouver-based, publicly traded company and is the world’s largest supplier of methanol globally. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol “MX” and on the Nasdaq Stock Market in the United States under the trading symbol “MEOH”. Methanex can be visited online at www.methanex.com.

FORWARD-LOOKING INFORMATION WARNING

This news release contains certain forward-looking statements, or forward-looking information, with respect to us and our industry. These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Statements that include the word “expects”, “will” or other comparable terminology and similar statements of a future or forward-looking nature identify forward-looking statements. More particularly and without limitation, any statement regarding Methanex’s intended use of proceeds is a forward-looking statement.

Forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to vary include, but are not limited to, risks relating to conditions in the financial markets and other risk factors as detailed from time to time in Methanex’s reports filed with Canadian securities administrators and the U.S. Securities and Exchange Commission. Certain of these risks are described in more detail in our 2025 Annual Management’s Discussion and Analysis and Second Quarter 2026 Management’s Discussion and Analysis and in our public filings with Canadian securities administrators and the U.S. Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on forward-looking statements. They are not a substitute for the exercise of one’s own due diligence and judgment. The outcomes implied by forward-looking statements may not occur and we do not undertake to update forward-looking statements except as required by applicable securities laws.

Inquiries:
Robert B. Winslow, CFA
Vice President, Investor Relations
Methanex Corporation
604-661-2600 or Toll Free: 1-800-661-8851
www.methanex.com

FAQ

What refinancing did Methanex (MEOH) announce for Natgasoline in August 2026?

Methanex announced Natgasoline’s refinancing of $290,950,000 in municipal debt through new tax-exempt 2026 Bonds. According to Methanex, proceeds will repay the existing 2018 bonds, maintaining the same principal amount while changing the amortization profile and maturity schedule.

What are the key terms of the new Natgasoline 2026 Bonds related to Methanex (MEOH)?

The 2026 Bonds have a $290,950,000 principal, a 4.75% coupon, a mandatory tender date of August 1, 2036, and final maturity on August 1, 2046. According to Methanex, these tax-exempt bonds will be loaned to Natgasoline LLC.

How will the Natgasoline refinancing affect the existing 2018 Bonds linked to Methanex (MEOH)?

The 2026 Bonds’ proceeds will fully repay the existing $290,950,000 2018 Natgasoline municipal bonds maturing in 2031. According to Methanex, this replaces debt that was subject to semi-annual sinking fund amortization starting October 1, 2025, altering repayment timing.

When is the closing of the Natgasoline 2026 Bonds expected for Methanex (MEOH)?

Closing of the 2026 Bonds is expected on or about August 28, 2026, subject to customary conditions. According to Methanex, once closed, the funds will be loaned to Natgasoline LLC to refinance the outstanding 2018 municipal bonds.

How does the Natgasoline refinancing impact cash flow flexibility for Methanex’s joint venture?

The refinancing defers mandatory amortization payments tied to the 2018 Bonds, which began October 1, 2025. According to Methanex, this structure gives Natgasoline greater flexibility in using operating cash flows, including potentially repaying higher-cost borrowings within the entity.

What ownership interest does Methanex (MEOH) have in Natgasoline LLC involved in this refinancing?

Methanex holds a 50% equity interest in Natgasoline LLC, a joint venture with Consolidated Energy. According to Methanex, the new 2026 tax-exempt bonds will support the joint venture’s capital structure while refinancing the existing 2018 municipal bond obligations.