Baytex Energy Corp. announced a cash tender offer for its $575 million of 7.375 % senior notes due 2032, offering holders $1,040 per $1,000 principal, which includes a $40 early‑tender premium. The tender will close on December 30, 2025, with final settlement expected on December 31, and is contingent on the closing of the company’s U.S. Eagle Ford asset sale.
The company also announced a conditional redemption of its $759.44 million of 8.500 % senior notes due 2030, scheduled for December 22, 2025. Like the tender, the redemption is tied to the Eagle Ford transaction and will be executed once the sale is consummated.
Both debt repurchases are funded by proceeds from the sale of Baytex’s U.S. Eagle Ford assets, which closed at $3.25 billion in cash. The divestiture removes a lower‑margin, higher‑cost U.S. portfolio and allows Baytex to focus on its higher‑return Canadian operations.
By retiring high‑coupon debt, Baytex will lower interest expense and extend its debt maturity profile. Net debt fell from roughly $2.3 billion in Q2 2025 to an estimated $2.0 billion by year‑end, aligning with the company’s target. The move also frees free cash flow that can be deployed to dividends or further deleveraging.
Management emphasized the strategic rationale. CEO Eric Greager said the transaction “positions Baytex as a focused, high‑return Canadian energy producer… Monetizing our U.S. Eagle Ford assets strengthens our balance sheet, supports capital allocation to our highest‑return opportunities and positions us to deliver meaningful shareholder returns.” He added that Baytex will allocate 100 % of free cash flow to debt repayment after dividends.
The market reacted positively to the Eagle Ford sale earlier in November, with Baytex shares rising 14 % on the TSX. The debt‑repurchase announcement reinforces investor confidence in the company’s deleveraging trajectory and its focus on core assets.
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