CALGARY, Alberta – Baytex Energy Corp. (“Baytex”) (TSX, NYSE: BTE) announced today the closing of its private placement offering (the “Offering”) of US$500 million aggregate principal amount of senior unsecured notes due 2027 (the “Notes”). The Notes were issued at par, bear interest at a rate of 8.75% per annum and mature on April 1, 2027. The Notes will pay interest semi-annually in arrears.
Baytex intends to use the net proceeds from the Offering and its existing unutilized credit facilities to redeem US$400 million aggregate principal amount of its outstanding 5.125% notes due June 1, 2021 (the “2021 Notes”) and $300 million aggregate principal amount of its outstanding 6.625% debentures due July 19, 2022 (the “2022 Debentures”).
Pursuant to the terms of the indenture governing the 2021 Notes, Baytex has issued a notice of redemption to redeem all of the outstanding 2021 Notes. In addition, pursuant to the terms of the indenture governing the 2022 Debentures, Baytex has issued a notice of redemption to redeem all of the outstanding 2022 Debentures.
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Notes are being offered only to “qualified institutional buyers” in the United States pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act. In Canada, the notes are to be offered and sold on a private placement basis in certain provinces of Canada. This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. This press release does not constitute an offer to purchase the 2021 Notes or the 2022 Debentures.