Baytex Energy Corp. (Baytex) (TSX, NYSE: BTE) has announced that it has entered into a definitive agreement (the Agreement) to acquire Ranger Oil Corporation (NASDAQ: ROCC) (the Acquisition).
In connection with the Acquisition, Baytex has entered in a debt commitment letter with CIBC Capital Markets (CIBC), RBC Capital Markets (RBC), and The Bank of Nova Scotia to provide aggregate debt commitments of US$1.75 billion, which are expected to comprise a US$1.0 billion revolving credit facility, US$250 million term loan, and US$500 million 364-day bridge loan facility (Bridge Facility). The Bridge Facility will provide financing to backstop an anticipated issuance of new debt securities prior to closing of the Acquisition. The debt commitments provide Baytex with the ability to consummate the Acquisition while optimizing its capital structure, including the redemption of Ranger’s outstanding senior notes, while maintaining adequate go-forward liquidity. CIBC and RBC are acting as Joint Bookrunners on the Bridge Facility.
Latham & Watkins LLP represents CIBC and RBC in the financing commitment related to the Bridge Facility with an Austin-based team led by partners David Miller and Sam Rettew, with associate Manu Vadlamudi.
