Baytex completes acquisition of Ranger Oil

On June 20, 2023, Baytex Energy Corp. ("Baytex") announced the closing of its acquisition of Ranger Oil Corporation ("Ranger Oil") valued at approximately US$2.5 billion, which included net debt of approximately US$650 million.

Under the terms of the agreement, announced on February 28, 2023, Ranger Oil shareholders received 7.49 Baytex shares plus US$13.31 cash, for each common share of Ranger Oil, for total consideration of approximately US$44.36 per share.

In connection with the transaction, Baytex entered into a debt commitment letter with Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Bank of Nova Scotia to provide aggregate debt commitments of US$1.75 billion, which was comprised of US$1 billion revolving credit facility, a US$250 million term loan and a US$500 million 364-day bridge facility. The bridge facility was used to provide financing to backstop the issuance of new debt securities prior to the transaction’s close. The debt commitments provided Baytex with the ability to optimize its capital structure, which included the redemption of Ranger Oil’s outstanding senior notes, while maintaining adequate go-forward liquidity.

Further information can be found on Newsfile’s website and baytex.com.

Baytex is an energy company based in Calgary, Alberta. It is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States.