CALGARY - Baytex Energy Corp . (TSX: NYSE:BTE) (NYSE: BTE), a Calgary-based energy company, has upsized its private placement offering of senior unsecured notes to US$575 million, with the notes set to mature on March 15, 2032. The notes, bearing an interest rate of 7.375% per annum, were priced at 99.266% of par to yield 7.500% per annum. The offering is expected to close on April 1, 2024, subject to customary closing conditions.
The company plans to utilize the net proceeds from the offering to redeem US$409.8 million aggregate principal amount of its outstanding 8.75% notes due April 1, 2027. Additionally, Baytex intends to repay a portion of the debt on its credit facilities and allocate funds for general corporate purposes.
In accordance with the terms of the indenture governing the 2027 Notes, Baytex has announced its intention to issue a conditional notice of redemption for all outstanding 2027 Notes, contingent on the successful completion of the offering. The notes will be offered in a private placement in certain provinces of Canada and, in the United States, will rely on an exemption from the registration requirements under Rule 144A of the Securities Act of 1933, as amended. The offering will also be available to non-U.S. investors outside of the United States under Regulation S.
The information in this article is based on a press release statement from Baytex Energy Corp.
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