- Baytex Energy is planning to generate a serious influx of cash to better bolster its financial position
- The Canadian oil and gas stock announced its intent to offer US$500 million aggregate principal amount of senior unsecured notes due in a private placement offering
- The Calgary-based company intends to use the net proceeds from the offering to redeem US$409.8 million aggregate principal amount of its outstanding 8.75 per cent notes
- Baytex Energy stock last traded at C$4.40 per share
Baytex Energy (TSX:BTE) is planning to generate a serious influx of cash to better bolster its financial position.
The Canadian oil and gas stock announced its intent to offer US$500 million aggregate principal amount of senior unsecured notes due in a private placement offering.
The Calgary-based company intends to use the net proceeds from the offering to redeem US$409.8 million aggregate principal amount of its outstanding 8.75 per cent notes due April 1, 2027, to repay a portion of the debt outstanding on its credit facilities and for general corporate purposes.
Senior notes are a type of bond issued by a company to raise funds with a higher priority in terms of repayment compared with other forms of debt. It is considered less of a risk to invest in senior notes than a stock, but senior notes typically offer lower interest rates.
Companies issue senior notes to borrow money at a lower cost compared with other forms of debt. When investors purchase these notes, they are essentially lending money to the company for a predetermined period, during which they receive periodic interest payments. Upon maturity, the company repays the principal amount borrowed.
Baytex Energy Corp. acquires, develops and produces crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States.
Baytex Energy stock last traded at C$4.40 per share. Its stock has lost nearly 8 per cent year-over-year, but has managed to gain more than 95 per cent since 2019.
Join the discussion: Find out what everybody’s saying about this Canadian oil and gas stock on the Baytex Energy Corp. Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
