Baytex Energy driving by with $500 million eight-year senior notes; initial talk high-7% area

By Paul A. Harris

Portland, Ore., March 14 – Baytex Energy Corp. plans to price a $500 million offering of senior notes due 2032 (B1/BB-) in a Thursday drive-by, according to market sources.

Initial guidance has the notes coming to yield in the high-7% area, according to a trader, who added that the deal is heard to be in the market with $600 million of reverse inquiry.

The Rule 144A and Regulation S eight-year notes come with three years of call protection.

RBC is leading the notes sale.

The Calgary, Alta.-based oil and gas company plans to use the proceeds to redeem $409.8 million of its outstanding 8¾% notes due April 1, 2027, to repay a portion of the debt outstanding on its credit facilities and for general corporate purposes.

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