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Baytex Energy Corp. (TSX:BTE,NYSE:BTE) has closed its private placement offering of senior notes due 2021 and 2024 in an aggregate principal amount of US$800 million. The 2021 notes were issued at par in an aggregate principal amount of US$400 million, bear interest at a rate of 5.125 percent per annum and with a maturity date of June 1, 2021. The 2024 notes were issued at par in an aggregate principal amount of US$400 million, bear interest at a rate of 5.625 percent per annum and will mature on June 1, 2024.
Baytex Energy Corp. (TSX:BTE,NYSE:BTE) has closed its private placement offering of senior notes due 2021 and 2024 in an aggregate principal amount of US$800 million. The 2021 notes were issued at par in an aggregate principal amount of US$400 million, bear interest at a rate of 5.125 percent per annum and with a maturity date of June 1, 2021. The 2024 notes were issued at par in an aggregate principal amount of US$400 million, bear interest at a rate of 5.625 percent per annum and will mature on June 1, 2024.
As quoted in the press release:
Baytex intends to use a substantial portion of the net proceeds from the offering of the Notes to purchase the notes tendered and accepted for purchase in its previously announced cash tender offers (collectively, the “Tender Offers”) and consent solicitations for the 9.875% Senior Notes due 2017 and the 7.50% Senior Notes due 2020 of Aurora USA Oil & Gas, Inc. The remaining net proceeds will initially be used to reduce Baytex’s outstanding indebtedness under its revolving credit facilities which will subsequently be re-drawn for general corporate purposes. The purpose of the offering, in conjunction with the Tender Offers, is to simplify Baytex’s debt capital structure following the completion of the Arrangement, which is expected to occur on June 11, 2014 (in Perth).
Click here to read the Baytex Energy Corp. (TSX:BTE) press release
