Baytex Energy Corp (USA)(NYSE:BTE) has closed its private placement offering of senior notes due 2021 and 2024 in an aggregate principal amount of $800 million. 

The company said that the 2021 Notes were issued at par in an aggregate principal amount of $400 million, bear interest at a rate of 5.125% per annum and mature on June 1, 2021. 

The 2024 Notes were issued at par in an aggregate principal amount of $400 million, bear interest at a rate of 5.625% per annum and mature on June 1, 2024. 

Concurrently with the closing of the offering, the company said that the gross proceeds of the offering in addition to an amount related to interest that would accrue on the Notes through a specified date were deposited into an escrow account until the date on which certain escrow conditions are satisfied, including the closing of the acquisition of all of the ordinary shares of Aurora Oil & Gas. 

Prior to or concurrently with the escrow release, the existing credit facilities of Baytex will be replaced with a $1.0 billion revolving unsecured credit facility with a four-year term, a $200 million unsecured term loan facility with a two-year term and a $200 million revolving unsecured credit facility with a four-year term for a US subsidiary of Aurora Oil & Gas. 

Baytex said that it 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 and consent solicitations for the 9.875% Senior Notes due 2017 and the 7.50% Senior Notes due 2020 of Aurora USA Oil & Gas. 

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 company added. 

Shares in Baytex were up 0.19% to $42.33 on Friday morning. This is towards the upper end of the company’s 52 week range which has seen a share price high of $43.08 and a low of $34.71.